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INBURSA REPORTS FOURTH QUARTER 2004 RESULTS
Grupo Financiero Inbursa: $637.3 MM USD profits under US GAAP and $5,370.6 MM Ps under the CNBV rules as of 2004.
IDEAL, a fully oriented company to develop infrastructure projects in Mexico and Latin America.
Banco Inbursa´s loan portfolio increased 13.2% and 20.9% in 4Q04 when compared with 3Q04 and 4Q03, respectively.
Frank Aguado(52) 55-56-25-4900 Ext. [email protected]
Grupo Financiero Inbursa posted profits of $637.3 MM USD under US GAAP and $5,370.6 MM Ps under CNBV rules during 2004, 100% and 122% increases relative to 2003, respectively. These figures represented a 18.8% and 14.2% ROEs for each case. It is worth to recall the $1,990.7 MM Ps net of taxes impact explained by Grupo Televicentro´s equity restructure. When adjusted by this figure, net income would have been $3,380.0 MM Ps under Mexican accounting principles, 39.8% higher than those registered in 2003. Higher operational volumes in the different subsidiaries together with more favorable market conditions during 2004, are the main reasons behind this result. It is worth to point out that all subsidiaries posted higher profits in 2004 relative to 2003.
As announced in July, 2004, Grupo Financiero Inbursa will spin-off around $700 MM USD to create “Impulsora del Desarrollo Economico de America Latina” (IDEAL) that will be listed and publicly traded in the Mexican Stock Exchange and each current shareholder will receive its proportional ownership of IDEAL. It is worth to mention that some approvals still pending. This company is oriented to the feasibility analysis, structuring, implementing and operating of infrastructure projects in Mexico and Latin America. These projects, such as PPP´s, water treatment, electricity, toll roads among others, are being analized by IDEAL.
Banco Inbursa´s loan portfolio stood at $55,139.9 MM Ps at the end of December 2004, 13.2% and 20.9% increases relative to the third quarter of 2004 and the fourth quarter of 2003, respectively.
HIGHLIGHTS
Mexico City, February 3, 2005.- Grupo Financiero Inbursa reported today results for the fourth quarter ended December 31, 2004.
1
Fax: (52) 55-56-25-4965
www.inbursa.comwww.inbursa.com
- All figures included in this report are expressed on December 2004 constant pesos and are not audited.- This press release is presented under regulation 1488 of the CNBV.- As required by regulation 1488 of the CNBV, the financial margin includes only the commissions and fees involved in interest related earnings. Forex and
inflationary effects on the loan portfolio are also reflected in the financial margin. - There have been no material changes to the Group’s accounting practices or policies during 2004. Therefore, the figures presented in this document are
consistent with those presented in the Group’s last annual report (2003).- Consolidated figures for Banco Inbursa and for Grupo Financiero Inbursa does not include minority interest.
Miguel Martinez(52) 55-56-25-4900 [email protected]
2
GRUPO FINANCIERO INBURSA(with subsidiaries and consolidated)
Under US GAAP
Net Income
Investment by Company
Mkt Value/Book Value 1.63Stock price USD (Dec’04) 1.84EPS (USD) 0.21Outstanding shares (‘000) 3,000,153Debt Rating (Banco Inbursa)S & P BBB-/A-3Fitch BBB-/F-3
December ’04Employees 4,133# clients 5.7MMPoints of attention (Physical presence) 176ATM’s 614Sales force 8,805
US GAAP
• Stockholders’ equity of Grupo Financiero Inbursa stood at $3,396.8 MM USD under US GAAP vs $3,397.4 MM USD reached under the CNBV rules. Accumulated deferred effects in the different subsidiaries together with monetary adjustments on the stockholders´ equity are the main reasons of this difference.
• Under US GAAP and on accumulated basis, Grupo Financiero Inbursa posted $637.3 MM USD profits during 2004 that favorable compares with the $318.9 MM USD obtained during 2003. This result is mainly explained by the additional income explained by the Grupo Televicentro´s equity restructure, higher volumes in core activities as well as the mark to market of the fixed rate long term funding position due to the volatility in long term interest rates.
• When compared independent quarters, net income increased 26% from $148.2 MM USD obtained in 4Q03 to $186.9 MM USD in 4Q04.
4Q04 3Q04 % chg vs. 4Q03 % chg vs. Jan - Dec %$ % $ 3Q04 $ 4Q03 2004 2003 Chg
Banco Inbursa 83.4 45% 44.8 86% 74.0 13% 204.3 114.7 78%
Operadora 4.6 2% 4.0 14% (0.6) -810% 16.5 10.7 54%
Seguros 36.1 19% 15.0 140% 15.5 133% 85.1 88.5 -4%
Pensiones 50.9 27% 167.5 -70% 47.2 8% 276.2 74.3 272%
Fianzas 3.0 2% 6.3 -53% 5.4 -44% 17.7 9.7 82%
Inversora 8.7 5% 5.7 55% 6.0 45% 36.0 17.1 111%
Others 0.2 0% 0.2 -17% 0.7 -71% 1.5 3.9 -61%
Total 186.9 100% 243.6 -23% 148.2 26% 637.3 318.9 100%
MM USD
4Q04 3Q04 % chg vs. 4Q03 % chg vs.$ % $ 3Q04 $ 4Q03
Banco Inbursa 1,827.0 54% 1,782.1 3% 1,596.3 14%
Operadora 43.5 1% 37.6 16% 34.8 25%
Seguros 486.5 14% 435.8 12% 369.9 32%
Pensiones 855.8 25% 774.4 11% 600.8 42%
Fianzas 77.8 2% 69.8 12% 58.1 34%
Inversora 98.7 3% 89.8 10% 75.1 31%
Others 7.4 0% 6.8 9% 55.3 -87%
Total 3,396.8 100% 3,196.2 6% 2,790.1 22%
MM USD
3
4Q04 3Q04 % chg vs. 4Q03 % chg vs. Jan - Dec %$ % $ 3Q04 $ 4Q03 2004 2003 Chg
Banco Inbursa 383.7 27% 284.8 35% 661.4 -42% 1,313.5 549.2 139%
Operadora 43.0 3% 41.2 4% 33.5 28% 168.7 155.4 9%
Seguros 451.2 32% (81.7) N.A (204.4) N.A 664.7 170.4 290%
Pensiones 396.7 28% 1,786.3 -78% 533.4 -26% 2,635.3 1,187.5 122%
Fianzas 70.0 5% 75.9 -8% 32.1 118% 232.5 158.1 47%
Inversora 62.3 4% 52.0 20% 55.1 13% 347.7 170.4 104%
Others 2.4 0% 3.3 -28% (1.8) N.A 8.3 26.1 -68%
Total 1,409.4 100% 2,161.8 -35% 1,109.4 27% 5,370.6 2,417.1 122%
MM Ps.
GRUPO FINANCIERO INBURSA(with subsidiaries and consolidated)
Under CNBV Rules
Net Income
• Grupo Financiero Inbursa posted $1,409.4 MM Ps profits during the fourth quarter of 2004, a 27% increase relative to the same period of the previous year. Better performance of the different subsidiaries as well as higher long term interest rates due to the fixed rate funding position are the main drivers behind this result.
• On an accumulated basis, net income increased 122% in 2004 relative to the same period of the previous year posting $5,370.6 MM Ps. When adjusted by the $1,990.7 MM Ps net of taxes impact explained by GrupoTelevicentro´s equity restructure, net income would have been $3,380.0 MM Ps, 39.8% higher than the one registered in 2003. Higher operational volumes in the different subsidiaries together with more favorable market conditions during 2004, are the main reasons behind this result.
Mkt Value/Book Value 1.62Stock price (Dec´04) 20.51Outstanding shares (‘000) 3,000,153Debt Rating (Banco Inbursa)S & P BBB-/A-3Fitch BBB-/F-3
CNBV GAAPTicker: GFINBURO(Stock Price)
Free Cash Flow
Total monetary position adjustment for Grupo Financiero Inbursa was $951.6 MM Ps during 4Q04.
16.9 16.8
19.521.0
19.320.5
14.714.813.6 13.6
14.3
16.3
E 04 F´04 M´04 A´04 M´04 J´04 J´04 A´04 S´04 O´04 N´04 D´04
MM Constant Ps. as of December, 2004 2000 2001 2002 2003 2004
+ Interest Income 10,323.5 8,833.7 8,669.2 10,731.5 10,783.7
- Interest Expense 6,877.8 5,270.3 5,132.6 8,052.5 8,129.0
= Financial Margin 3,445.7 3,563.4 3,536.6 2,678.9 2,654.7
- Unrealized gains/losses (net of deferred taxes) 563.4 478.7 33.6 267.9 615.0
- General Expenses 1,140.3 1,448.9 1,400.8 1,536.6 1,728.9
+ Commissions & Fees 1,589.6 1,059.4 746.4 1,226.9 1,631.6
+ Patrimonial Reserves Creations 263.9 729.3 696.5 -218.5 443.7
+ Subsidiaries Income 232.7 47.1 401.4 2,055.3 3,097.1
- Taxes 1,432.1 550.2 380.9 275.0 870.6
= Free Cash Flow 2,396.1 2,921.5 3,565.6 3,663.1 4,612.6
• Free cash flow stood at $4,612.6 MM Ps at the end of 2004, 25.9% more than the obtained in 2003. It is worth to point out that general expenses include an extraordinary donation of $50 MM Ps
4
Stockholders' Deferred OtherEquity Debt Reserves Taxes Liabilities Total
Banco Inbursa 23,200.3 56,260.7 6,357.3 777.2 6,949.0 93,544.5Seguros Inbursa 2,740.8 - 13,096.8 465.4 1,915.0 18,218.0Pensiones Inbursa 9,433.9 - 12,831.1 - 137.1 22,402.2Inversora Bursátil 1,108.0 - - 80.9 97.0 1,285.8Operadora Inbursa 485.4 - - 40.5 4.4 530.3Fianzas G-Inbursa 821.1 - 205.5 - 128.1 1,154.6Others 90.0 67.55 - 0.5 9.95 168.1
TOTAL 37,879.6 56,395.8 32,490.8 1,364.5 9,240.5 137,303.6
Investment* Loan Fixed Income Fixed OtherPortfolio Portfolio MM Portfolio Assets Assets Total
Banco Inbursa 11,278.2 55,620.7 19,466.4 192.8 6,986.5 93,544.5Seguros Inbursa 2,689.5 339.9 10,507.4 994.7 3,686.5 18,218.0Pensiones Inbursa 10,335.4 - 11,513.7 - 553.2 22,402.2Inversora Bursátil 1,142.0 - 46.5 27.5 69.8 1,285.8Operadora Inbursa 117.8 - 390.6 - 21.8 530.3Fianzas G-Inbursa 551.9 62.5 336.8 59.9 143.5 1,154.6Others 3.0 126.0 20.8 0.0 18.2 168.1
TOTAL 26,117.8 56,275.0 42,282.3 1,274.9 11,479.6 137,303.6*: Includes stocks and investments in other subsidiaries (i.e. Sinca, Afore…)
USES
SOURCES
4Q04 3Q04 % chg vs. 4Q03 % chg vs.$ % $ 3Q04 $ 4Q03
Banco Inbursa 23,200.3 61% 22,679.9 2% 21,844.4 6%
Operadora 485.4 1% 441.0 10% 410.9 18%
Seguros 2,740.8 7% 2,276.1 20% 2,065.2 33%
Pensiones 9,433.9 25% 9,040.4 4% 6,846.3 38%
Fianzas 821.1 2% 742.3 11% 573.5 43%
Inversora 1,108.0 3% 1,042.2 6% 884.6 25%
Others 90.0 0% 87.3 3% 661.6 -86%
Total 37,879.6 100% 36,309.3 4% 33,286.5 14%
MM Ps.
Sources & Uses of Funds(MM Ps as of December 2004)
Assets under Management: $575,901.2 MM Ps
Assets in Custody: $694,323.0 MM Ps
Investment by Company
• Stockholders’ equity of Grupo Financiero Inbursa reached $37,879.6 MM Ps at the end of December 2004, 4% and 14% increase relative to 3Q04 and 4Q03, respectively. It is worth to point out the increase in Pensiones Inbursa´sequity that is mainly explained by the transaction of Grupo Televicentro. This investment used to be registered under the equity method in Promotora Inbursa and marked to market in July 2004. It is worth to mention that this investment hasn't been marked to market again since that date as it has been classified as a non monetary asset, its value is only increased in real terms, if marked to market at the end of 2004 Televisa´s CPOs stake value would have been $130 MM USD more. On may 2004, took place the $900 MM Ps dividend payment announced on 1Q04.
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4Q04MM USD
3Q04MM USD
4Q03MM USD
Stockholders´equity under CNBV GAAP 2,080.8 1,961.1 1,848.0
Securities Valuation Adjustments 0.0 65.8 59.4
Deferred Taxes (200.3) (326.2) (193.9)
Derivates 0.0 0.0 (13.4)
Others (53.5) 81.4 399.6
Stockholders´Equity Under US GAAP 1,827.0 1,782.1 1,596.3
• Stockholders’ equity resulted in $1,827.0 MM USD under US GAAP in 4Q04. Under the CNBV rules, Banco Inbursa stockholders’ equity stood at $2,080.8 MM USD, $253.8 MM USD more. The difference is basically explained by deductions from Deferred Taxes and other adjustments.
Net Income
Stockholders’ Equity
BANCO INBURSA Under US GAAP(MM USD)
• Under US GAAP Banco Inbursa posted profits of $83.4 MM USD during 4Q04 compared with $35.8 MM USD under the CNBV rules, $47.6 MM USD more. This result is mainly explained by add-backs on monetary positions and deferred liabilities adjustments of $48.9 MM USD MM USD and deductions of $1.3 MM USD coming from other adjustments.
4Q04MM USD
3Q04MM USD
4Q03MM USD
Jan-Dec ´04 MM USD
Jan-Dec ´03 MM USD
Net income under CNBV GAAP 35.8 24.8 59.5 115.6 48.9
Adjustments on monetary positions 38.7 23.3 25.4 90.9 70.9
Adjustments on deferred liabilities 10.2 (7.5) (11.4) (5.2) (2.3)
Others (1.3) 4.2 0.5 2.9 (2.8)
Net Increase 47.6 20.0 14.5 88.7 65.8
Net Income Under US GAAP 83.4 44.8 74.0 204.3 114.7
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MM Ps 4Q04 3Q04 4Q03 12M04 12M03 Chg
Personnel 28.1 21.1 29.9 102.7 106.0 -3%
Administrative Expenses 308.2 263.5 249.0 1,009.9 851.8 19%
Contributions to IPAB 43.7 40.3 38.3 172.8 152.1 14%
Depreciations and Amortizations
30.4 31.5 34.4 133.1 123.9 7%
Administrative and Promotion Expenses
410.5 356.5 351.7 1,418.5 1,233.9 15%
MM Ps 4Q04 3Q04 4Q03 12M04 12M03
Financial Instruments Negotiable
633.2 (69.7) 326.6 546.2 1,195.7
Repos (5.5) (4.9) (9.5) (23.4) 28.3
Securities Purchases and Sales
304.7 30.8 (69.1) (235.6) 59.8
Derivate Instruments (110.5) 153.3 513.3 1,314.2 (1,124.6)
Total 822.0 109.4 761.3 1,601.4 159.3
MM Ps 4Q04 3Q04 4Q03 12M04 12M03 Chg
Interest Income 2,321.2 2,361.5 1,695.6 8,386.6 7,701.6 9%
Interest on loans & securities 1,384.4 1,504.4 1,084.0 5,260.9 4,941.8 6%
Repo´s interest income 936.8 857.1 611.6 3,125.7 2,759.8 13%
Interest Expenses (1,917.0) (1,605.7) (1,217.2) (5,856.9) (5,173.8) 13%
Interest on deposits & funding (1,004.1) (770.3) (552.2) (2,876.0) (2,392.3) 20%
Repo´s interest expense (912.9) (835.3) (665.0) (2,980.9) (2,781.5) 7%
REPOMO (398.7) (237.5) (156.9) (920.4) (388.1) 137%
Financial Margin 5.4 518.3 321.6 1,609.3 2,139.7 -25%
Loan Loss Reserves (Net) (381.0) (282.4) (216.0) (1,276.7) (1,184.6) 8%
(375.6) 235.9 105.6 332.7 955.0 -65%Risk Adjusted Net Interest Income
Banco Inbursa posted profits of $1,313.5 MM Ps during 2004 that favorable compares with the $549.2 MM Ps obtained in 2003. This result was achieved even though the $344.4 MM Ps net increases in monetary positions adjustments and reserves creations. Higher commissions and fees income due to corporate restructures and the retail banking operations as well as higher levels of long term interest rates are the main drivers behind this result.
BANCO INBURSA (Commercial & Investment Banking)
Financial MarginDuring the 4Q04 Banco Inbursa reallocated $227.3 MM Ps from financial income to market related income according with CNBV regulation.
On accumulated basis and adjusted by $227.3 MM Ps reallocated in market related income, Financial Margin before monetary position adjustments increased 9.1% in 2004 relative to 2003. This result is mainly due to higher levels of interest rates as well as the increase in loan portfolio.
When compared 4Q04 with 4Q03, Financial Margin excluding monetary position adjustments increased 32.0%.
Market Related IncomeMarket related income posted profits of $822.0 MM Ps during the fourth quarter of 2004 compared with $109.4 MM Ps obtained during 3Q04. This result is mainly explained by the swap valuation due to higher levels of long term interest rates during the quarter as well as the reallocation of $227.3 MM Ps coming from financial margin.
On accumulated basis Market related income posted profits of $1,601.4 MM Ps during 2004 that favorable compared with $159.3 registered during 2003. This result is mainly explained by the swap fixed rate position positive impact during the year.
Loan Loss ReservesLoan loss reserves increased $381.0 MM Ps during the fourth quarter of 2004, reaching an accumulated amount of $6,357.3 MM Ps at the end of December 2004. This amount represented 18.8 times non-performing loans. Non performing loans stood at 0.6% of the total loan portfolio during the quarter.
Risk Adjusted Net Interest Income
Market Related Income
Administrative and Promotion Expenses
- Figures in this report are not audited. Even though they were prepared with the same accounting principles and policies used in the latest audited annual Financial Statements.
- Figures must be understood and analyzed just for the quarter. The best reference to compare are the December 2003 audited Financial Statements.- All figures included in this report are in addition to the Financial Statements.
As of December 2004, Demand Deposits stood at $16,695.3 MM Ps, 13.4% and 44.9% increases relative to 3Q04 and 4Q03, respectively. This result is mainly explained by the Inbursa CT account that represented 78% of these deposits and 30% of total loan portfolio.
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MM Ps 4Q04 % 3Q04 % 4Q03 %
TOTAL LOAN PORTFOLIO
55,140 100% 48,708 100% 45,612 100%
Commercial 50,543 92% 44,250 91% 41,606 91%
Financial Institutions 810 1% 801 2% 896 2%
Consumer 2,878 5% 2,925 6% 2,810 6%
Housing 572 1% 500 1% 103 0%
Federal Government 0 0% 0 0% 0 0%
Fobaproa / IPAB 0 0% 0 0% 0 0%
PAST DUE LOANS 338 1% 232 0% 196 0%
LOAN LOSS RESERVES 6,357 12% 6,155 13% 5,386 12%
4Q04 3Q04 4Q03
Pesos 60% 55% 48%
USD 40% 45% 52%
Secured * 78% 78% 79%
Unsecured 22% 22% 21%* Collateral, real guarantees and guarantors
Dic-04 Dic-03System Sep '04
Loans / Total Assets 63.2% 71.7% 53.4%
NPL / Loan Portfolio 0.6% 0.4% 2.7%
LLR / NPL (times) 18.8 27.5 2.0
Op. Cost / Fin. Margin + Other Inc
31.2% 42.2% 81.9%
$ MM Ps %
NPL September 30, 2004 228.92
- Decreases in NPL 58.24 100.0%* Recoveries & Restructures 58.24 100.0%* Write Offs 0.00 0.0%
+Increases in NPL 167.31 100.0%* Exchange rate effects -1.28 -0.8%* New NPL 168.59 100.8%
NPL December 31, 2004 338.00
Current Ps
MM Ps 4Q04 3Q04 4Q03 12M04 12M03 Chg
OTHER EXPENSES / INCOME
9.6 10.9 (158.2) (5.5) (319.2) -98%
Charge Offs 17.9 (8.7) (18.0) (5.4) (54.6) -90%
Repomo (53.8) (48.0) (183.5) (179.0) (458.9) -61%
Other Income 45.6 67.5 43.3 178.9 194.3 -8%
EARNINGS FROM SUBSIDIARIES
49.8 161.5 35.9 269.9 458.0 -41%
Sinca Inbursa 32.6 144.3 26.0 213.3 417.8 -49%
Siefore Inbursa 17.3 17.2 9.9 56.6 40.3 41%
MONETARY POSITION RESULTS
452.6 285.5 340.4 1,099.4 847.0 30%
Repomo - Margin 398.7 237.5 156.9 920.4 388.1 137%
Repomo - Other expenses
53.8 48.0 183.5 179.0 458.9 -61%
Earnings from Subsidiaries
Earnings form subsidiaries posted profits of $49.8 MM Ps in 4Q04 compared with $35.9 MM Ps obtained during 4Q03, a 38.7% increase. This result is mainly explained by the results obtained by Sinca Inbursa.
On accumulated basis earnings from subsidiaries decreased 41% during 2004 compared with 2003. It is worth to recall that during 1Q03, Sinca Inbursa sold its stake in GrupoTelevicentro to Promotora Inbursa, a subsidiary of Pensiones Inbursa.
Loan Portfolio and Asset Quality
Loan portfolio stood at $55,139.9 MM Ps at the end of December 2004, 13.2% and 20.9% increases relative to the third quarter of 2004 and the fourth quarter of 2003, respectively.
As of December 2004, loan loss reserves grew 18% from $5,385.7 MM Ps in 4Q03 to $6,357.3 MM Ps in 4Q04, representing a coverage ratio to non performing loans of 18.8 times.
Income Statement Selected Figures
Banco Inbursa Selected Ratios
Non Performing Loans
Non Performing loans increased 47.6% in 4Q04 relative to 3Q04. This result is mainly explained by $168.6 MM Ps of new NPL that was partially off-set by $58.2 MM Ps of recoveries during the quarter.
It is worth to recall that in commercial lending the total amount of loans are recorded as non perform on the day following of any default.
Loan Portfolio
Non Performing Loans
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MM Ps as of December, 2004 Dec '04 Sep '04 Dec '03 Mkt. Avg.
Sep ´04
Credit Risk Assets 64,530.2 57,496.3 42,497.3 852,085.0
Tier 1 Capital 30.4% 33.3% 43.7% 20.9%
Net Capital 31.6% 34.5% 44.9% 23.2%
Credit & Portfolio Risk Assets
97,578.6 90,346.2 86,260.3 1,352,897.9
Tier 1 Capital 20.1% 21.2% 21.5% 13.2%
Net Capital 20.9% 22.0% 22.1% 14.6%
CurrencyLoan
PortfolioPast Due
LoansLoan Loss Reserves
Loan Loss Reserve vs
Loan Portfolio (%)
Loan Loss Resrve vs
Past Due Loans (Times)
USD* 22,381.0 240.7 3,366.2 15.04% 13.98
MXP 32,113.0 97.2 2,853.4 8.89% 29.35
UDI´s* 788.7 0.0 137.8 17.47% 4,593.03
Total 55,282.7 338.0 6,357.3 11.50% 18.81
* Both figures, USD and UDI´s are expressed in pesos
KIND OF RISKMARKET VALUE
VALUE AT RISK (1)
% VAR vs TIER 1 CAPITAL
Fixed Income 60,857.0 (66.0) -0.35%
Equity 1,634.0 (28.0) -0.15%
Derivatives (9,916.0) (136.0) -0.73%
Banco Inbursa 52,575.0 (176.0) -0.94%
TIER 1 CAPITAL (2) 18,814.0
(1) Value at Risk for 1 day with a confidence level of 95% and using last twelve months information(2) Last quarter TIER 1 CAPITAL
Loan Portfolio Breakdown by Sector
Commercial Lending
Banco Inbursa remains as the third most important bank in the Mexican system in commercial lending with a 14.1% market share as of September 2004.
Loan portfolio remains well diversified in many sectors such as construction, services, manufactures, financial services and transport, among others.
Capitalization
Even though the dividend payment done on may 2004, Banco Inbursa remains as a well capitalized bank with a 20.1% TIER 1 Capital ratio as of December, 2004.
Capitalization Ratio
Value at Risk
Banco Inbursa’s risk management is based on value at risk models and different methodologies such as Delta Neutral Value at risk (VAR), with different confidence levels and holding period horizons, and is complemented with stress testing analysis using hypothetical as well as historical scenarios.
The credit risk is carried out by the Credit Committee trough detailed and individual analysis of each client; additionally econometric models had been implemented to evaluate the probability of default such as the anticipated loss individually and by group of risk.
The liquidity risk is measured trough stress tests under low liquidity condition of the risk factors. These methodologies are supported in the suggested by Banco de Mexico in its 2019 Circular numeral M13
The value at risk results should be understood as follows: as of December 2004, under an stressed scenario (year 1998 market conditions). Banco Inbursa would have lost $176 MM Ps with its December 2004 portfolio which would have represented 0.94% of its September 2004 TIER 1 Capital.
Value at Risk * 4Q04 (MM Ps)
Loan Portfolio 4Q04 (MM Ps)
Mining 6.5%
Entretainment
4.7%
Financial Services
9.2%Steel 4.6%Telecom
3.5%
Others 7.7%
Energy 1.6%
Food 4.1%
Construction 2.1%
Manufacture 24.0%
Transport 6.2%Services
25.2%
9
4Q04 3Q04 4Q03Mkt. Share
Dec-04
Affiliattes (#) 2,510,861 2,371,881 2,120,961 7.5%
Assets Under Mngmt. (MM Ps)
38,853.5 36,378.0 31,151.0 8.1%
4Q04 3Q04 4Q03Mkt. Avg Dec-04
Avg. Min. Wages/Affiliate 5.04 5.18 5.39 3.55
Active Workers/Affiliate 31.2% 32.5% 31.6% 36.3%
ROE* 12.8% 15.4% 28.5% 27.7%
*Anualized
AFORE INBURSA(Pension Funds)
Afore Inbursa posted $98.9 MM Ps in commission income during 4Q04 compared with $140.2 MM Ps in 3Q04. Seasonality in commission income explains this deference. If compared 4Q04 with 4Q03, commission income increased 19.5%. This result is mainly supported by the growth in affiliate base. When compared 2004 with 2003, commission income decreased 11%. The change in commission structure that started on July, 2003 is the main driver behind this result.
New regulation in the Afore business related to affiliate base was approved at the end of 2004. Starting 2005, an affiliate can change to a cheaper Afore at any time he wants but if he wants to move to a more expensive one, he has to wait at least one year as it was restricted for everybody in the former law. This new criteria applies for both, workers assigned by the Banco de Mexico and transfers among the Afore system. Afore Inbursa is ranked as the third cheapest Afore in the system and this new law brings the opportunity to increase the affiliate base in a significant manner trough more than 33 million clients in the system.
Affiliate Base & Assets Under Management
Assets under management reached $38,853.5 MM Ps at the end of December 2004 a 24.7% increase relative to the same period of 2003 and a 6.8% increase when compared with 3Q04.
In one year, affiliate base was increased by 389,900 new clients from 2,120,961 in 4Q03 to 2,510,861 in 4Q04, this is mainly explained by higher transfers among the Afore system and by the distribution of Banco de Mexico that took place during the year.These new affiliates were distributed among three best Afores of the system. Afore Inbursa was ranked among the three better. This ranking was based on the more favorable conditions to the client, such as lower commissions and better returns.
The average minimum wages/affiliate ratio was 5.04 as of December 2004, compared with 3.55 market average.
Stockholders´Equity
Stockholders’ equity increased from $727.7 MM Ps in 4Q03 to $837.8 MM Ps in 4Q04 a 15% increase.
Selected Figures
Affiliate Quality
MM Ps 4Q04 3Q04 4Q03 12M04 12M03 Chg
Comission Income 98.9 140.2 82.8 464.6 521.9 -11%
Total General Expenses (90.9) (94.9) (79.4) (321.5) (214.0) 50%
Administrative Expenses (25.3) (22.5) (16.9) (99.4) (73.3) 36%
Operating Expenses (17.3) (22.1) (21.4) (71.6) (70.7) 1%
Promotion Expenses (48.3) (50.3) (41.1) (150.6) (70.0) 115%
Depreciation & Amortization (2.8) (2.9) (3.3) (11.8) (13.9) -15%
Operating Income 5.2 42.4 0.1 131.2 293.9 -55%
Other Income 2.6 0.9 0.4 4.5 3.2 41%
REPOMO (62.4) 10.3 (11.6) (39.8) (22.8) 75%
Net Income 12.0 33.1 (3.9) 107.0 207.1 -48%
Investments 780.8 778.2 714.1 780.8 714.1 9%
Fixed Assets 16.6 16.4 18.3 16.6 18.3 -9%
Total Assets 881.4 924.5 872.4 881.4 872.4 1%
Stockholders' Equity 837.8 822.5 727.7 837.8 727.7 15%
Assets Under Management4Q02-4Q04 (MM Ps)
25,708.7
27,180.7
28,742.2
30,259.1
31,151.0
32,743.7
34,281.8
36,378.0
38,853.5
4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
10
AFORE %
Inbursa 100.0%
Actinver 92.8%
XXI 92.4%
Principal 92.2%
Banamex 92.1%
Banorte Generali 91.6%
IXE 90.9%
HSBC 90.7%
Azteca 90.0%
Bancomer 89.8%
ING 89.7%
Profuturo GNP 88.5%
Santander Mexicano 86.1%
System Average 92.0%
COST OF OPPORTUNITY INDICATOR
The information presented should not be in any case understood as a recommendation
• This cost of opportunity indicator was launched by Consar on September 2001. The indicator shows the percentage of assets that an affiliate has in less than what he would have in the Afore with a better balance accumulation per affiliate, which was Inbursa as of December 2004.
• The indicator allows to compare the balance accumulated by an affiliate after commissions charges and returns on his investment trough the Siefore
• This figure only considers the balance for retirement after handicap or oldness. The indicator might change according to the worker salary.
Assumptions:
• Workers with a 3 times Mexico City´s minimum wage, affiliated to the IMSS (Mexican Social Security Institute) since July 1997.
• Commission structure of each Afore
• Siefore returns
• The sample considers a time frame from July 2, 1997 to December 31, 2004.
11
4Q04MM USD
3Q04MM USD
4Q03MM USD
Jan-Dec ´04 MM USD
Jan-Dec ´03 MM USD
Net income under CNSF GAAP 41.2 (6.3) (17.4) 59.6 14.4
Reserves Adjustments 1.0 4.6 (28.4) 6.7 (36.0)
Investments Adjustments (16.3) 27.1 (0.2) 25.5 2.5
Deferred Taxes 4.1 (5.2) 2.8 (6.0) 30.9
Deferred Acquisition Costs (3.2) 0.1 (3.8) (3.4) (1.1)
Monetary Positions Adjustments 20.1 13.0 10.5 45.9 26.7
Others (10.7) (18.3) 52.0 (43.1) 51.1
Net Increase (5.1) 21.3 32.9 25.5 74.1
Net Income Under US GAAP 36.1 15.0 15.5 85.1 88.5
• Seguros Inbursa´s net income reached $36.1 MM USD during 4Q04 and under US GAAP, $5.1 MM USD less than those registered under the CNSF rules during the same period. This result is mainly explained by $25.1 MM USD add-backs coming from reserves, deferred taxes and monetary positionadjustments together with $30.2 MM USD deductions in investments, deferred acquisition cost and other adjustments.
• Seguros Inbursa’s Stockholders’ equity resulted $486.5 MM USD under US GAAP at the end of December, 2004 compared with $245.8 MM USD under the CNSF rules. The difference is basically explained by: $57.9 MM USD, $383.7 MM USD and $46.5 MM USD add-backs from assets, reserves and other adjustments, respectively, and deductions of $247.4 MM USD from deferred taxes.
Net Income
Stockholders’ Equity
SEGUROS INBURSA Under US GAAP(MM USD)
4Q04MM USD
3Q04MM USD
4Q03MM USD
Stockholders´equity under CNSF GAAP 245.8 196.4 174.7
Adjustments on Assets 57.9 41.5 74.6
Deferred Acquisition Cost 60.8 57.4 58.5
Fixed Assets (35.8) (33.7) 32.3
Others 32.9 17.8 (16.2)
Reserves Adjustments 383.7 397.3 293.1
Deferred Taxes (247.4) (249.4) (174.0)
Others 46.5 50.0 1.5
Net Increase 240.7 239.4 195.2
Stockholders´Equity Under US GAAP 486.5 435.8 369.9
12
MM Ps 4Q04 3Q04 4Q03 12M04 12M03 Chg
Direct Premiums 2,671.5 2,075.7 2,217.6 8,979.9 8,453.2 6%
Reserves Provisions 297.5 617.6 168.7 1,387.1 926.2 50%
Technical Income 488.3 (172.0) 272.1 367.3 880.9 -58%
Net Financial Income 140.1 178.8 180.8 1,007.3 790.8 27%
Repomo (212.6) (146.0) (124.5) (511.5) (315.4) 62%
Net Income 451.3 (81.7) (204.4) 664.7 170.4 290%
Assets 18,218.0 17,536.1 16,475.7 18,218.0 16,475.7 11%
Investments 14,525.8 14,112.6 12,372.4 14,525.8 12,372.4 17%
Reserves 13,096.8 13,153.6 12,094.9 13,096.8 12,094.9 8%
Stockholders' Equity 2,740.8 2,276.1 2,065.2 2,740.8 2,065.2 33%
Line of business
Breakdown 2004
Growth Rate 2004 vs 2003
Combined Ratio (2004)
Combined Ratio (2003)
P&C 28.1% -8.6% 73.5% 76.7%
Automobile 23.0% -12.0% 95.3% 101.9%
Life 37.3% 39.1% N.A N.A
Acc. & Health 11.6% 10.9% 97.6% 98.0%
Total 100% 6.2% 91.7% 94.1%
Seguros Inbursa posted $664.7 MM Ps profits during 2004 that favorable compares with $170.4 MM Ps obtained in 2003. This result was mainly due to 3 factors; 1) a 6.2% growth in total premiums, 2) a lower combined ratio that decreased from 94.1% in 2003 to 91.7% in 2004, even though higher acquisition costs mainly in the automobile business after the price war in this market, reflecting lower siniestrality due to better risk underwriting and 3) the increase of 27% in net financial income due to better market conditions. It is worth to point out that this result was achieved even though the 62% increase in monetary position and the 50% growth in reserves creations during the year.
SEGUROS INBURSA(Insurance)
Seguros Inbursa Selected Financial InformationSubsidiaries result posted $135.7 MM Ps as of December 2004 compared with $17.5 MM Ps during 2003. This result is explained by Patrimonial Inbursa.
Seguros Inbursa remains as one of the most efficient insurance companies in the country maintaining accurate combined ratios in the different lines of businesses.
Selected FiguresTotal Premiums
Seguros Inbursa´s combined ratio improved from 94.1% in 2003 to 91.7% at the end of 2004, while total premiums increased 6.2% in the same frame of time.
Automobile business decreased 12.0% while improving combined ratio from 101.9% as of December 2003 to 95.3% at the end of 2004. This result is mainly explained by a price war in this market during the year in which Inbursa´s strategy was oriented to concentrate efforts in accurate risks by tariffs differentiation.
Property & casualty premiums decreased 8.6% basically explained by tariff reductions due to the re-insurance costs decreases.
Life and A&H businesses increased 39.1% and 10.6%, respectively. This result is mainly explained by the growth in client base as well as cross-selling due to synergies obtained with the retail strategy.
RATIOS Market Avg
4Q04 4Q03 Sep ´04
Investments / Assets* 90.3% 88.0% 78.3%
Investments / Reserves* 1.41 1.28 1.08
Reserves / Premiums* 2.72 2.71 1.51
Combined Ratio 91.7% 94.1% 95.0%
* Includes the annuitty bussiness
13
• Under USGAAP, Pensiones Inbursa net income stood at $50.9MM USD in 4Q04 compared with $43.2 MM USD under the CNSF rules, $7.7 MM USD more. This result is explained by add-backs of $253.1 MM USD coming from reserves, deferred taxes, monetary position and other adjustments as well as deductions of $245.4 MM USD explained by investments and deferred acquisitions costs adjustments during the quarter.
Net Income
Stockholders’ Equity
PENSIONES INBURSA Under US GAAP(MM USD)
• Pensiones Inbursa’s Stockholders’ equity resulted $954.1 MM USD under US GAAP in 4Q04 compared with $846.1 MM USD under the CNSF rules. The difference is basically explained by: $376.1 MM USD and $157.9 MM USD add-backs from investments and reserves adjustments, respectively, and deductions of $194.6 MM USD and $231.4 MM USD from deferred taxes and other adjustments, respectively.
4Q04MM USD
3Q04MM USD
4Q03MM USD
Jan-Dec ´04 MM USD
Jan-Dec ´03 MM USD
Net income under CNSF GAAP 43.2 155.2 44.9 236.4 100.5
Reserves Adjustments 3.2 0.6 2.2 3.0 6.0
Investments Adjustments (233.6) 4.1 (13.6) (205.3) (31.5)
Deferred Taxes 102.8 (0.8) 6.2 97.3 (21.6)
Deferred Acquisition Costs (11.8) (0.3) (0.0) (12.2) (0.1)
Monetary Positions Adjustments 23.5 20.9 18.4 62.8 44.1
Others 123.7 (12.3) (10.9) 94.1 (23.0)
Net Increase 7.7 12.2 2.3 39.8 (26.1)
Net Income Under US GAAP 50.9 167.5 47.2 276.2 74.3
4Q04MM USD
3Q04MM USD
4Q03MM USD
Stockholders´equity under CNSF GAAP 846.1 780.1 579.2
Investments Adjustmens 376.1 325.9 24.3
Reserves Adjustments 157.9 155.0 152.3
Deferred Taxes (194.6) (203.8) (116.2)
Others (231.4) (192.5) 28.7
Net Increase 108.0 84.6 89.1
Stockholders´Equity Under US GAAP 954.1 864.7 668.3
14
MM Ps 4Q04 3Q04 4Q03 12M04 12M03 Chg
Direct Premiums 102.3 51.5 195.7 545.4 694.0 -21%
Reserves Provisions 80.1 (56.6) 126.5 243.4 389.8 -38%
Acquisition cost (7.4) (1.9) (25.3) (18.6) (95.5) -81%
Technical Income (160.5) (73.9) (128.4) (441.2) (498.4) -11%
Net Financial Income 284.7 197.3 231.7 953.5 875.9 9%
Repomo (244.5) (236.2) (218.5) (700.3) (520.9) 34%
Income from Subs.* 285.5 1,702.5 503.0 2,288.6 1,047.6 118%
Net Income 396.7 1,786.3 533.4 2,635.3 1,187.5 122%
Assets 22,402.2 21,969.9 19,594.9 22,402.2 19,594.9 14%
Investments 22,136.2 21,730.4 19,384.8 22,136.2 19,384.8 14%
Reserves 12,831.1 12,824.2 12,653.1 12,831.1 12,653.1 1%
Stockholders' Equity 9,433.9 9,040.5 6,846.3 9,433.9 6,846.3 38%* Promotora Inbursa
PENSIONES INBURSA(Annuities)
Investments increased from $19,594.9 MM Ps at the end of December, 2003 to $22,136.2 MM Ps as of 4Q04, representing a 14% growth. This result is mainly explained by higher level of operations in Promotora Inbursa, Pensiones Inbursa´s subsidiary, after it´s equity increase.
Stockholders´ equity stood at $9,433.9 MM Ps as of December 2004, a 38% increase relative to 4Q03. This was the result of the mark to market of Grupo Televicentro investment as announced in July 2004.
Pensiones Inbursa´s net income reached $2,635.3 MM Ps during 2004 that favorable compares with $1,187.5 MM Ps obtained in 2003. This result is mainly explained by the equity restructure of Grupo Televicentro during the quarter when Inbursa received 198.9 million CPO´s of GrupoTelevisa and represented $1,990.7 MM Ps net of taxes extraordinary income.
It is worth to recall that Sinca Inbursa sold its 25% stake in Grupo Televicentro to PromotoraInbursa, a subsidiary of Pensiones Inbursa, during 1Q03. This investment used to be registered under the equity method in Promotora Inbursa and marked to market in July 2004. It is worth to mention that this investment hasn't been marked to market again since that date as it has been classified as non monetary asset, its value is only increased in real terms, if marked to market at the end of 2004 Televisa´s CPOs stake value would have been $130 MM USD more.
Selected Financial Information
15
MKT AVG. MSE
DINBUR Fixed Income 2,959.1 5.60% 3.91%
INBUREX Fixed Income 7,719.2 6.30% 4.79%
INBURSA Stock´s, Bonds $ M.M. 5,021.7 45.76% 31.08%
FONIBUR Stock´s, Bonds $ M.M. 8,449.2 51.04% 31.08%
ANUALIZED RETURN
46.87%
FUND PORTFOLIOASSETS (MM Ps)
ANUALIZED RETURN
Long Term Debt24%
Gov. Bonds (Nom. Rate)
43%
MTNs29%
Gov. Bonds (Real. Rate)
4%
Gov. Bonds (Nom. Rate)
42%
CD's30%
Gov. Bonds (Real Rate)
28%
CD´s6%
Gov. Securities
27%
Stocks67%
Gov. Securities
29%
CD's3%
Stocks68%
Dinbur$3.0 bn Ps
OPERADORA INBURSA(Mutual Funds)
Operadora Inbursa posted $168.7 MM Ps profits during 2004 compared with $155.4 MM Ps in the same period of the previous year, representing 8.5% increased . Higher operational volumes is the main driver behind this result.
Funds under management reached $24,149.2 MM Ps at the end of 2004.
* MSE= Mexican Stock Exchange
Mutual Funds(December, 2004)
Fonibur$8.4 bn Ps
Fondo Inbursa$5.0 bn Ps
Inburex$7.7 bn Ps
Funds Under ManagementDecember 2004
16
MM Ps 4Q04 3Q04 4Q03 12M04 12M03 Chg
Direct Premiums 108.5 99.1 85.8 373.5 310.4 20%
Technical Income 49.4 44.5 32.4 163.4 175.6 -7%
Earnings From Investments
0.5 1.2 2.6 4.8 22.3 -79%
Monetary Position (9.9) (9.4) (8.0) (27.4) (19.3) 42%
Net Income 70.0 75.9 32.1 232.5 158.1 47%
Total Assets 1,154.6 1,109.5 941.3 1,154.6 941.3 23%
Investments 1,011.9 960.1 844.3 1,011.9 844.3 20%
Reserves 205.5 208.0 212.2 205.5 212.2 -3%
Stockholders' Equity 821.1 742.3 573.5 821.1 573.5 43%
MM Ps. 4Q04 3Q04 4Q03 12M04 12M03 Chg
Operating Margin 84.5 71.3 78.2 505.0 244.4 107%
Interest Income (1.6) (7.5) 0.7 3.9 4.3 -9%
Net Income 62.3 52.0 55.1 347.7 170.4 104%
Total Assets 1,285.8 1,289.7 1,121.0 1,285.8 1,121.0 15%
Investment Portfolio 1,113.0 1,047.9 892.6 1,113.0 892.6 25%
Stockholders' Equity 1,108.0 1,042.2 884.6 1,108.0 884.6 25%
Assets in Custody 693,297.8 607,877.7 522,184.8 693,297.8 522,184.8 33%
FIANZAS GUARDIANA INBURSA(Bonds)
INVERSORA BURSATIL(Brokerage House)
Inversora Bursatil posted profits of $347.7 MM Ps during 2004, 104% higher than those registered during 2003. This result is mainly explained by the significant participation of Inbursa in the largest corporate restructures in the country (ICA and Desc), as well as better market conditions and higher levels of operations during 2004.
During the third quarter of 2004 InversoraBursatil underwrote $47.1 Bn Ps for an accumulated amount of $167.7 Bn Ps in Commercial Paper, continuing its leadership in this segment of business in Mexico.
Stockholders´ equity increase 25% in one year, from $884.6 MM Ps at the end of 2003 to $1,108.0 MM Ps in 2004.
Select Figures
During 2004, Fianzas Guardiana Inbursa posted profits of $232.5 MM Ps, compared with $158.1 MM Ps obtained in the same period of the previous year, a 47% increase. This result is mainly explained by the release of reserves during the year that were in excess according with the new regulation as well as the increased of 20% in premiums.
Select Figures
17
APPENDIXUS GAAP
18
4Q04 3Q04 % chg vs. 4Q03 % chg vs. Jan - Dec %$ % $ 3Q04 $ 4Q03 2004 2003 Chg
Banco Inbursa 83.4 45% 44.8 86% 74.0 13% 204.3 114.7 78%
Operadora 4.6 2% 4.0 14% (0.6) -810% 16.5 10.7 54%
Seguros 36.1 19% 15.0 140% 15.5 133% 85.1 88.5 -4%
Pensiones 50.9 27% 167.5 -70% 47.2 8% 276.2 74.3 272%
Fianzas 3.0 2% 6.3 -53% 5.4 -44% 17.7 9.7 82%
Inversora 8.7 5% 5.7 55% 6.0 45% 36.0 17.1 111%
Others 0.2 0% 0.2 -17% 0.7 -71% 1.5 3.9 -61%
Total 186.9 100% 243.6 -23% 148.2 26% 637.3 318.9 100%
MM USD
4Q04 3Q04 % chg vs. 4Q03 % chg vs.$ % $ 3Q04 $ 4Q03
Banco Inbursa 1,827.0 54% 1,782.1 3% 1,596.3 14%
Operadora 43.5 1% 37.6 16% 34.8 25%
Seguros 486.5 14% 435.8 12% 369.9 32%
Pensiones 855.8 25% 774.4 11% 600.8 42%
Fianzas 77.8 2% 69.8 12% 58.1 34%
Inversora 98.7 3% 89.8 10% 75.1 31%
Others 7.4 0% 6.8 9% 55.3 -87%
Total 3,396.8 100% 3,196.2 6% 2,790.1 22%
MM USD
Investment by Company
Net Income
19
MM USD 4Q04 % 3Q04 % 4Q03 %
TOTAL LOAN PORTFOLIO 4,945 100% 4,303 100% 3,859 100%Commercial 4,533 92% 3,918 91% 3,520 91%Financial Institutions 73 1% 69 2% 76 2%Consumer 258 5% 252 6% 238 6%Housing 51 1% 43 1% 9 0%Federal Government 0 0% 0 0% 0 0%Fobaproa / IPAB 0 0% 0 0% 0 0%
PAST DUE LOANS 30 1% 20 0% 17 0%LOAN LOSS RESERVES 570 12% 531 12% 456 12%
4Q04 3Q04 4Q03Pesos 60% 55% 48%USD 40% 45% 52%
Secured * 78% 78% 79%Unsecured 22% 22% 21%
* Collateral, real guarantees and guarantors
Sources & Uses of Funds(MM USD)
Loan Portfolio
SOURCESStockholders' Deferred Other
Equity Debt Reserves Taxes Liabilities Total
Banco Inbursa 1,827.0 5,046.0 570.2 69.7 623.3 8,136.2 Seguros Inbursa 486.5 - 1,174.7 41.7 171.8 1,874.7 Pensiones Inbursa 855.8 - 1,150.8 - 12.3 2,018.9 Inversora Bursátil 98.7 - - 7.3 8.7 114.7 Operadora Inbursa 43.5 - - 3.6 0.4 47.6 Fianzas G-Inbursa 77.8 - 18.4 - 11.5 107.7 Others 7.4 6.1 - 0.0 0.9 14.4
TOTAL 3,396.8 5,052.1 2,914.1 122.4 828.8 12,314.2
USESInvestment* Loan Fixed Income Fixed Other
Portfolio Portfolio MM Portfolio Assets Assets Total
Banco Inbursa 1,011.5 4,988.6 1,745.9 17.3 372.8 8,136.2 - Seguros Inbursa 241.2 30.5 942.4 89.2 571.3 1,874.7 - Pensiones Inbursa 927.0 - 1,032.7 - 59.3 2,018.9 - Inversora Bursátil 102.4 - 4.2 2.5 5.6 114.7 - Operadora Inbursa 10.6 - 35.0 - 2.0 47.6 - Fianzas G-Inbursa 49.5 5.6 30.2 5.4 17.0 107.7 - Others 0.3 11.3 1.9 - 1.0 14.4 -
TOTAL 2,342.5 5,036.0 3,792.3 114.3 1,029.0 12,314.2 - *: Includes stocks and investments in other subsidiaries (i.e. Sinca, Afore…)
20
APPENDIXBanco Inbursa
21
CAPITALIZATION(Constant MM Pesos as of December 31, 2004)
TIER 1 CAPITAL 19,606
STOCKHOLDERS' EQUITY 23,200 SUBORDINATED DEBT & CAPITALIZATION INSTRUMENTS - LESS: INVESMENT IN SUBORDINATED DEBT -
INVESTMENTS IN FINANCIAL INSTITUTIONS 2,025 INVESTMENTS IN NON-FINANCIAL INSTITUTIONS 1,242 FINANCING GRANTED FOR THE AQUISITION OF SHARES - OF THE BANK OR OTHER GROUP SUBSIDIARIES - EXCESS ON DEFERRED TAXES - RESTRUCTURING CHARGES & OTHER INTANGIBLES 327 PREVENTIVE RESERVES PENDING TO BE CONSTITUITED AND CONSTITUITED - OTHER ASSETS -
TIER 2 CAPITAL 787
CAPITALIZATION INSTRUMENTS - GENERAL PREVENTIVE RESERVES 787 SUBORDINATED DEBT -
TIER 1 & 2 CAPITAL 20,393
RISK - WEIGHTED ASSETS
RISK WEIGHTED ASSETS
REQUIRED CAPITAL
PESO NOMINAL INTEREST RATE OPERATIONS 23,064 1,845
PESO OR UDI REAL INTEREST RATE OPERATIONS 367 29
FOREIGN CURRENCY NOMINAL INTEREST RATE 3,613 289
POSITION IN UDIS OR WITH A RETURN INDEXED TO INFLATION 6 0
POSITIONS IN FOREIGN CURRENCY OR INDEXED TO THE FX RATE 3,347 268
POSITIONS IN SHARES OR INDEXED TO THE PRICE OF SECURITIES 2,651 212
33,048 2,644
RISK WEIGHTED ASSETS
REQUIRED CAPITAL
GRUOP I ( RISK WEIGHT 0 % ) - -
GRUOP II ( RISK WEIGHT 20 % ) 1,342 107
GRUOP III ( RISK WEIGHT 100 % ) 61,608 4,929 62,949 5,036
CAPITAL REQUIREMENTS ON: PERMANENT EQUITY,FURNITURE & EQUIPMENT, PREPAYMENTS AND DEFERRED CHARGES 1,581 126
64,530 5,162
MARKET RISK - WEIGHTED ASSETS
TOTAL
CREDIT RISK - WEIGHTED ASSETS
SUB-TOTAL
TOTAL
22
TRADING PORTFOLIO 15,964,079
Securities 1,548,637
Securities Issued by Finantial Institutions 0
Bonds 5,370,766
Government Securities 9,006,035
Other Issues (CPO´s) 38,641
SECURITIES HELD FOR SALE 1,881
Government Securities 1,881
SECURITIES HOLD TO MATURITY 3,445,147
Bearer Notes 0
Credit Link 3,445,147
Commercial paper 0
REPURCHASE AGREEMENTS 5,245
Cetes -117
Bondes 5,362
Bankers´ Acceptances 0
RESELL AGREEMENTS 1,680
Cetes -123
Bondes 1,803
Bankers´ Acceptances 0
TOTAL DEFERRED TAXES 732,788
Foreign Exchange Investments 128,953
Investments 882
Stocks 221,134
Permanent Equity Investments -22,824
Bonds 43,944
Repos 354
Forwards 22,627
Swaps 345,783
Futures 24/48 hrs -4,078
Fiscal losses -6,369
Amort. buy-sell portfolio 67,321
Forex -64,939
December 31, 2004(Constant 000´s Pesos as of December 31, 2004)
INVESTMENT IN SECURITIES December 31, 2004
(Constant 000´s Pesos as of December 31, 2004)
REPURCHASE PORTFOLIO
December 31, 2004DEFERRED TAXES
(Constant 000´s Pesos as of December 31, 2004)
23
Loan Loss Reserves at September 30, 2004(constant million pesos as of December 31, 2004)
- Adjustment for inflation Sep - Dec ´04 133
Loan Loss Reserves at September, 2004 (million nominal pesos) 6,049
+ Provisions recorded during the period 376
+ Currency valuation & other -68
Loan Loss Reserves at December 31, 2004. 6,357
INBURSA: ALLOWANCE FOR LOAN LOSS RESERVES
6,182
PESOS UDI´s USDTOTAL BANK
PERFORMING LOANS
Commercial 28,313 365 22,347 51,025
Interbank 776 - 34 810
Consumer 2,460 417 - 2,877
Mortgages 564 7 - 571
Government - - - -
Fobaproa Bonds - - - -
Total Performing Loans 32,113 789 22,381 55,283
NON PERFORMING LOANS
Commercial 81 - 241 322
Interbank - - - 0
Consumer 7 - - 7
Mortgages 9 - - 9
Total Non Permorming Loans 97 0 241 338
LOAN PORTFOLIO BREAKDOWN BY CURRENCY
PERFORMING LOANS NON PERFORMINGLOANS
Commercial 51,023 322Interbank 810 - Consumer 2,878 7Mortgages 572 9Government - - Fobaproa Bonds - -
Total 55,283 338
4Q04
LOAN PORTFOLIO(Constant MM Pesos as of December 31, 2004)
LOAN PORTFOLIO 4Q04
Total Loan Portfolio 55,621
Loan Loss Reserves 6,357
TOTAL LOAN PORTFOLIO (NET) 49,264
24
MM current Ps as of December, 2004
PORTFOLIO REQUIRED RESERVES
Risk % of risk Notional % in provision Notional
A 48.4% 28,506 0% - 0.99% 174B 42.3% 24,888 1% - 19.99% 2,696
C 3.7% 2,153 20% - 59.99% 788
D 2.8% 1,625 60% - 89.99% 976E 2.9% 1,722 90% - 100% 1,722
Subtotal 100% 58,894 6,355
Plus: Plus:Non-Classified portfolio - - Aditional estimates 3
Plus:Exceptued portfolio 0.0% 0
Total Credit Portfolio 100% 58,894 Total Reserves 6,357
NOTES:
1.- ACCOUNTING INFORMATION RELATIVE TO THE LOAN CLASSIFICATION OF THE PORTFOLIO FOR THE QUARTER ENDING DECEMBER 31,2004, WITH A RISK EXPOSURE RATE OF THE PORTFOLIO BASED UPON THE RATINGS GRANTED AS OF DECEMBER 31, 2004. THIS PROCEDURE FOLLOWS THE GUIDE LINES OF THE CNBV.
2.- IN ACCORDANCE WITH LOAN CLASSIFICATION RULES, THE INSTITUTION IS OBLIGED TO GRADE INDIVIDUALLY AT LEAST 80% OF ITS LOAN PORTFOLIO SUBJECT TO RATING.
3.- BASE LOAN PORTFOLIO CLASSIFIED INCLUDES CONTINGENT OPERATIONS SHOWN IN ITS CORRESPOPNDING GROUP FOR MEMORANDOM ACCOUNTS AT THE END OF THE CONSOLIDATED BALANCE SHEET REPORTED ON DECEMBER 31, 2004.
4.- IN ACCORDANCE WITH THE REGULATION 1460, PREVENTIVE RESERVES INCLUDES THE MORTGAGE PORTFOLIO PROVISIONS AS OF DECEMBER 2004 FOR $4,825,000 Ps
5.- IN ACCORDANCE WITH THE REGULATION 1488, PREVENTIVE RESERVES INCLUDES THE PAST DUE LOANS INTEREST PROVISIONS FOR $2,508,000 Ps
6.- IN ACCORDANCE WITH THE REGULATION 1493, PREVENTIVE RESERVES INCLUDES THE CONSUMER PORTFOLIO PROVISIONS AS OF DECEMBER 2004 FOR $14,390,000, $0, $552,000, $3,427,000 and $1,070,000 THAT CORRESPONDS TO RISKS "A", "B", "C", "D" AND "E", RESPECTIVELY.
7.- THE OUTCOME OF THIS CREDIT RISK RATING IS INCLUDED IN THE CONSOLIDATED BALANCE SHEET REPORTEDAS OF DECEMBER 31, 2004.
LOAN PORTFOLIO RATINGS(Constant MM Pesos as of December 31, 2004)
The risk rating of the lines of credit and the necessary preventive reserves are calculated according to the standard process established in the circular 1480 of the national banking and securities commission (CNBV) dated September 29, 2000
Loan Subject to Clasification
Loan Loss Reserves
LOAN PORTFOLIO 58,894 6,357
Commercial Loans 54,618 6,304Risk "A" 24,801 155Risk "B" 24,362 2,684Risk "C" 2,123 782Risk "D" 1,620 972Risk "E" 1,712 1,712Except Federal Government 0 0
Interbank Loans 810 13
Risk "A" 718 4Risk "B" 83 1Risk "C" 0 0Risk "D" 0 0Risk "E" 8 8
Mortgages Loans 581 18
Risk "A" 110 1Risk "B" 443 11Risk "C" 29 6Risk "D" 0 0Risk "E" 0 0
Consumer Loans 2,885 19Risk "A" 2,878 14Risk "B" 0 0Risk "C" 1 1Risk "D" 5 3Risk "E" 1 1
Aditional Reserves 3
25
(Constant 000´s Pesos as of December 31, 2004)
Pesos
Hedging DerivativesForwards
Bid 22,272,796.8 Ask 6,256,845.2
Transactional DerivativesForwards
Bid 26,605,030.6 Ask 2,732,716.1
FuturesTIIE 28 15,594,189.0 Pesos 1,870,000.0
TOTAL 25,320,551.9
DERIVATIVES INSTRUMENTS
(Constant 000´s Pesos as of December 31, 2004)
PesosUSD*TOTAL
BALANCE:
PESOS Balance Weighted
Discounts 958,075
Interbanking 872,538
1,830,613 8.29%
USD* Balance WeightedLoans from foreing banks 979,100
Loans from national banks 4,300
983,400 2.42%
* Figures in USD are expressed in Pesos
INTERBANK LOANS & OTHER
December 31,2004
1,830,613983,400
2,814,013
MATURITY TOTAL
1 to 7 days 156,792
8 days to 1 month 8,876
1 to 3 months 905,006
3 to 6 months 55,514
6 to 9 months 98,368
9 months to 1 year 1,053,159
1 to 2 years 518,068
2 to 3 years -
3 to 4 years 18,230
4 to 5 years -
5 to 7 years -
7 to 9 years -
more than 9 -
TOTAL 2,814,013
26
US GAAPFinancial Statements
27
GRUPO FINANCIERO INBURSAConsolidated Income Statement
US GAAP (MM USD)
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Interest Income 127.1 109.0 99.3 104.2 100.2 194.3 149.9 130.6
Interest Expense 50.4 155.1 45.3 (7.6) 30.1 38.8 38.2 66.7FINANCIAL MARGIN 76.7 (46.1) 54.0 111.8 70.2 155.4 111.7 63.9
Loan Loss Provisions 30.5 27.9 26.5 18.2 23.6 28.5 24.5 33.8
RISK ADJUSTED NII 46.2 (74.1) 27.5 93.6 46.5 126.9 87.2 30.1
Premiums 116.5 147.7 138.1 131.7 139.3 169.4 134.6 165.8Comissions & Tariffs 16.1 35.0 22.8 20.6 19.0 41.3 24.6 22.4Market-Related Income 87.9 92.9 50.3 61.0 39.7 89.0 296.7 172.0TOTAL OPERATING INCOME 266.7 201.5 238.7 306.8 244.6 426.6 543.1 390.3
Aquisiton Cost 29.8 30.2 27.8 27.5 30.8 29.7 32.2 31.6Contrctual obligatios & other net Cost 80.2 93.4 95.9 107.4 113.7 114.9 95.3 120.3Policies dividends 0.1 3.3 2.3 3.2 2.5 1.2 1.9 3.2Other Insurance & Bond reserves 3.8 0.2 2.0 1.9 1.6 1.8 1.6 1.3Administrative Expenses 17.8 54.7 48.6 52.7 36.4 57.0 48.5 57.2
OPERATING INCOME 134.9 19.7 62.1 114.1 59.6 222.1 363.7 176.8
Other Expenses (Products) 5.2 (5.2) (5.0) 3.1 (23.6) 15.7 (3.8) (12.6)
NET INCOME BEFORES TAXES 129.8 24.9 67.1 111.0 83.2 206.4 367.5 189.4
Incurred Income Tax 25.7 5.5 21.4 (3.4) 13.8 14.0 14.8 22.3Deferred Income Tax 14.8 21.8 5.6 (13.3) (14.4) 72.8 116.4 (22.8)
NET INCOME BEFORE SUBSIDIARIES 89.2 (2.4) 40.1 127.7 83.8 119.6 236.2 189.8
Participated net income from subs. 44.4 10.2 (14.7) 16.9 (6.2) 16.3 31.5 1.6
RESULTS FROM CONTINUED OPERATION 133.6 7.7 25.4 144.6 77.6 135.8 267.7 191.4
NET INCOME 133.6 7.7 25.4 144.6 77.6 135.8 267.7 191.4
MINORITY INTEREST (0.1) (6.3) 2.5 (3.6) 0.2 6.3 24.2 4.5
28
GRUPO FINANCIERO INBURSA Consolidated Balance Sheet
US GAAP(MM USD)
ASSETS Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Cash & due from Banks 1,096.7 707.9 568.0 549.0 821.6 739.9 715.0 888.3
Financial Instruments 2,812.0 3,704.8 3,763.3 3,808.6 4,331.3 3,936.5 4,947.3 5,422.4Negotiable 1,121.7 1,943.3 1,586.6 1,757.3 1,669.4 1,138.3 2,268.3 3,184.2For Sale 698.1 705.1 644.7 560.3 1,341.5 1,267.5 1,099.1 829.1Held to Maturity 992.2 1,056.5 1,532.0 1,491.1 1,320.3 1,530.6 1,579.8 1,409.1Unlisted Securities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Investments in Real State for Leasing 11.6 12.0 11.8 11.5 11.4 11.1 11.1 11.3
Repos & Derivatives 828.6 917.9 766.1 781.6 777.2 219.9 202.9 175.1Repo Operations 7.3 7.6 7.9 8.3 7.7 4.6 1.6 1.8Securities to be received in credit Operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Derivatives 821.3 910.3 758.2 773.3 769.5 215.4 201.3 173.2
LOANS 4,204.2 4,156.8 3,427.7 3,718.4 3,807.9 3,639.2 3,980.4 4,712.3Commercial 3,836.8 3,734.3 3,116.4 3,396.1 3,469.3 3,294.5 3,615.8 4,330.3Interbank 358.6 414.4 62.6 75.8 82.3 78.9 69.1 72.6Consumer 0.7 0.9 243.5 237.7 239.6 242.7 252.4 258.1Housing 8.1 7.1 5.1 8.7 16.7 23.1 43.2 51.3Federal Government 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0FOBAPROA/IPAB 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
PAST-DUE LOANS 70.6 19.2 11.4 16.6 16.9 15.2 20.0 30.3TOTAL GROSS LOANS 4,274.8 4,176.0 3,439.1 3,735.0 3,824.9 3,654.4 4,000.4 4,742.6Loan Loss Reserves 387.4 421.8 440.2 455.6 480.7 503.9 531.1 570.2
TOTAL NET LOANS 3,887.4 3,754.2 2,998.9 3,279.4 3,344.1 3,150.4 3,469.3 4,172.4
Receivables,Sundry Debtors & Adv. Payments 1,200.2 1,627.9 715.5 472.6 616.7 814.1 614.4 697.2Fixed Assets (net) 151.4 158.6 151.8 80.7 142.8 174.7 192.5 196.8Repossessed Assets 1.8 1.9 1.8 1.7 1.8 1.7 1.7 1.8Permanent Equity Investments 389.7 228.4 235.3 270.1 229.8 267.6 367.1 305.5Deferred Taxes (net) 1.1 1.2 0.0 1.1 1.1 0.0 0.0 0.0Other assets,deferred charges & intangible 287.6 276.5 334.9 418.6 356.9 330.0 239.7 246.3
TOTAL ASSETS 10,668.2 11,391.4 9,547.4 9,674.8 10,634.6 9,645.9 10,761.1 12,117.0
29
LIABILITIES Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
DEPOSITS 2,910.0 3,339.3 2,786.7 2,820.8 3,591.9 3,459.5 3,980.2 4,788.9
Demand Deposits 740.7 827.2 883.0 969.3 1,075.0 1,110.2 1,259.4 1,492.7Time Deposits 96.8 111.1 97.9 102.1 123.5 111.4 95.6 76.7Bank Bonds 167.0 172.8 0.0 0.0 0.0 0.0 0.0 0.0MTN´ s 1,905.5 2,228.2 1,805.8 1,749.4 2,393.4 2,237.9 2,625.2 3,219.5
Contingency claim & Premium Reserves 1,595.3 1,686.8 1,648.0 1,649.0 1,703.8 1,667.1 1,692.1 1,786.5
INTERBANK LOANS & OTHER 99.7 402.8 202.0 305.5 28.4 226.5 71.3 252.3
REPO & DERIVATIVES OPERATIONS 1,635.3 918.6 865.1 895.6 881.2 89.2 79.4 65.7Repo Operations 6.6 5.6 4.6 5.6 5.8 3.0 1.0 1.8Credit related operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Derivatives 1,628.7 913.0 860.6 890.1 875.4 86.2 78.4 63.9
OTHER ACCOUNTS PAYABLE 1,206.3 1,647.1 766.2 594.3 913.1 563.9 921.0 1,006.8Income tax & Employee profit sharing 72.1 47.8 68.1 57.4 42.7 33.7 44.5 47.2Other accounts payable 1,134.2 1,599.3 698.0 536.9 870.4 530.3 876.5 959.7
DEFERRED TAXES 496.5 548.7 534.4 548.4 554.0 605.3 726.5 717.3DEFERRED CREDITS 0.1 0.1 0.1 0.1 0.1 19.6 0.1 0.1
TOTAL LIABILITIES 7,943.1 8,543.4 6,802.5 6,813.7 7,672.5 6,631.2 7,470.5 8,617.6
STOCKHOLDERS´ EQUITYSUSCRIBED CAPITAL 1,010.1 1,009.0 1,009.0 1,008.7 1,008.7 1,008.7 1,008.7 1,008.7
Paid-in Capital 1,010.1 1,009.0 1,009.0 1,008.7 1,008.7 1,008.7 1,008.7 1,008.7
EARNED CAPITAL 1,700.9 1,783.1 1,668.3 1,781.4 1,879.7 1,932.9 2,187.5 2,388.1Retained Earnings 2,069.1 1,847.5 1,853.3 1,862.7 2,170.6 2,172.5 2,401.2 2,244.3Adjusments for changes in Accounting Principles (502.0) (212.3) (355.7) (400.2) (368.3) (446.5) (457.3) (493.5)Net Income of the period 133.8 147.8 170.7 318.9 77.4 206.9 243.6 637.3
Minority Interest 14.1 56.0 67.5 71.0 73.6 73.1 94.4 102.5
TOTAL STOCKHOLDERS´ EQUITY 2,725.2 2,848.0 2,744.9 2,861.1 2,962.1 3,014.7 3,290.6 3,499.3
LIABILITIES & STOCKHOLDERS' EQUITY 10,668.2 11,391.4 9,547.4 9,674.8 10,634.6 9,645.9 10,761.1 12,117.0
30
BANCO INBURSAConsolidated Income Statement
US GAAP (MM USD)
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Interest Income 121.0 103.1 93.9 96.5 97.1 101.1 112.2 126.1
Interest Expense 51.3 154.4 46.7 (6.8) 32.3 30.4 34.6 53.3
Financial Margin 69.7 (51.3) 47.2 103.3 64.7 70.7 77.6 72.8
Loan Loss Provisions 30.5 27.9 26.5 18.2 23.6 28.5 24.5 33.8
Risk Adjusted Net Interest Income 39.2 (79.2) 20.8 85.1 41.1 42.2 53.0 39.0
Comissions and Fees 12.7 27.5 16.1 12.6 14.4 16.4 18.2 11.5
Market-Related Income 27.7 43.5 8.1 10.5 (32.1) 76.9 4.6 57.7
Operating Revenues 79.6 (8.2) 45.0 108.3 23.3 135.5 75.8 108.2
Non-Interest Expense 25.9 25.8 26.8 30.4 25.5 26.4 28.6 30.6
Operating Income 53.7 (34.0) 18.2 77.9 (2.1) 109.1 47.2 77.6
Other Income (Expenses) 0.0 0.0 0.0 0.0 0.0 0.3 (0.3) 0.0
Earnings Before Taxes 53.7 (34.0) 18.2 77.9 (2.1) 109.4 46.9 77.6
Incurred Income Tax & Profit Sharing 12.1 (1.1) 2.9 2.0 3.0 1.8 2.4 1.3
Deferred Income Tax 9.4 4.9 1.2 3.8 (22.6) 51.7 18.0 (2.9)
Net Income before Subsidiaries' Net Income 32.2 (37.8) 14.1 72.1 17.5 55.9 26.5 79.2
Subsidiaries' Net Income 39.1 (6.4) (4.5) (1.7) 8.3 (5.3) 18.6 4.3
Continous Operations' Net Income 71.3 (44.2) 9.7 70.4 25.7 50.6 45.1 83.5
Discontinued Operations & Extraordinary Items 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Minority Interest 0.1 6.3 (2.5) 3.6 (0.2) (0.1) (0.3) (0.1)
Net Income 71.4 (37.9) 7.1 74.0 25.5 50.5 44.8 83.4
31
BANCO INBURSAConsolidated Balance Sheet
US GAAP (MM USD)
ASSETS Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Cash & Due From Banks 1,094.5 700.0 569.5 547.8 826.1 628.4 561.5 890.5
Financial Instruments 456.5 1,140.9 1,133.3 1,035.0 1,208.7 1,046.5 1,713.1 1,762.6 Negotiable 448.0 1,130.6 628.7 568.3 798.9 545.1 1,191.9 1,476.8 For Sale 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Held to Maturity 8.3 10.1 504.5 466.6 409.7 501.2 521.0 285.6 Unlisted Securities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Repos & Derivatives 825.3 912.4 762.3 773.8 772.4 160.9 149.7 128.5 Repo Operations 4.0 2.1 4.1 2.6 2.9 2.7 1.0 0.9 Derivatives 821.3 910.3 758.2 771.2 769.5 158.1 148.7 127.6 Guarantee Instruments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0LOANS 4,348.2 4,306.2 3,435.6 3,842.1 4,109.9 4,058.5 4,182.9 4,915.2 Commercial 3,980.8 3,883.7 3,124.3 3,519.8 3,771.2 3,713.7 3,818.3 4,533.2 Interbank 358.6 414.4 62.6 75.8 82.3 78.9 69.1 72.6 Consumer 0.7 0.9 243.5 237.7 239.6 242.7 252.4 258.1 Housing 8.1 7.1 5.1 8.7 16.7 23.1 43.2 51.3 Federal Government 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 FOBAPROA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Past-Due Loans 70.6 19.2 11.4 16.6 16.9 15.2 20.0 30.3
Total Gross Loans 4,418.8 4,325.4 3,447.0 3,858.7 4,126.8 4,073.6 4,203.0 4,945.5
Preventive Provision for Credit Risks 387.4 421.8 440.2 455.6 480.7 503.9 531.1 570.2
Total Net Loans 4,031.4 3,903.7 3,006.8 3,403.1 3,646.1 3,569.7 3,671.8 4,375.3
Receivables & Sundry Debtors 819.2 950.5 371.2 107.3 274.2 325.8 214.6 286.7Fixed Assets (net) 12.7 16.5 20.2 19.6 17.8 33.2 33.5 34.6Repossessed Property 1.8 1.9 1.8 1.7 1.8 1.7 1.7 1.8Permanent Equity Investments 362.2 188.4 175.6 180.2 180.7 218.7 311.7 244.6Deferred taxes (net) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Other assets,deferred charges & intangible 22.8 13.2 14.8 31.5 32.5 56.6 46.5 46.2TOTAL ASSETS 7,626.4 7,827.5 6,055.4 6,100.1 6,960.1 6,041.5 6,704.1 7,770.8
32
LIABILITIES Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Deposits 2,914.2 3,376.3 2,792.3 2,826.2 3,597.3 3,466.4 3,991.0 4,793.7
Demand Deposits 744.9 833.0 888.5 974.7 1,080.4 1,117.0 1,270.2 1,497.4 Time Deposits 96.8 111.1 97.9 102.1 105.1 111.4 95.6 76.7 Bank Bonds 167.0 172.8 0.0 0.0 0.0 0.0 0.0 0.0 MTN´ s 1,905.5 2,259.4 1,805.8 1,749.4 2,411.8 2,237.9 2,625.2 3,219.5
Interbank Loans & Other 238.5 545.4 202.0 421.3 322.4 226.5 268.1 252.4Repo Operations 3.2 0.6 0.9 0.2 1.9 1.5 0.2 0.6Trading Options 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Derivatives 1,628.7 913.0 860.6 890.1 875.4 86.2 78.4 63.9Other Accounts Payable 614.7 1,123.4 415.1 126.6 328.5 279.6 306.7 553.1Income Tax & Employee Profit Sharing 25.2 9.0 11.3 12.7 4.0 4.6 6.4 5.9Deferred Taxes 225.0 237.7 224.4 223.2 201.9 246.6 267.2 270.0Deferred Credits 0.1 0.1 0.1 0.1 0.1 19.6 0.1 0.1
TOTAL LIABILITIES 5,649.6 6,205.4 4,506.6 4,500.3 5,331.5 4,331.1 4,918.0 5,939.6
STOCKHOLDERS´ EQUITYSUSCRIBED CAPITAL 987.1 987.1 987.1 987.1 987.1 987.1 987.1 987.1 Paid-in Capital 987.1 987.1 987.1 987.1 987.1 987.1 987.1 987.1 Share subscription premium 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EARNED CAPITAL 989.7 635.0 561.6 612.6 641.4 723.3 799.0 844.2 Capital Reserves 205.5 226.4 226.4 226.4 226.4 231.1 231.1 231.1 Retained Earnings 1,418.8 1,001.9 1,001.9 1,001.9 1,048.3 1,200.4 1,200.4 1,216.7Adjustment for Changes on Accounting Principles (708.8) (630.3) (710.8) (733.8) (662.6) (788.0) (757.4) (812.1) Net income of the period 71.4 33.5 40.7 114.7 25.5 76.0 120.9 204.3 Minority Interest 2.8 3.5 3.5 3.5 3.8 3.8 4.0 4.3Total Stockholders´ Equity 1,976.8 1,622.2 1,548.8 1,599.8 1,628.6 1,710.4 1,786.1 1,831.3
LIABILITIES & STOCKHOLDERS´ EQUITY 7,626.4 7,827.5 6,055.4 6,100.1 6,960.1 6,041.5 6,704.1 7,770.8
33
SEGUROS INBURSAIncome Statement
US GAAP (MM USD)
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Revenue 140.4 151.8 145.5 142.5 167.9 168.4 148.1 192.8
Premiums 113.8 133.2 129.6 130.9 142.9 150.4 135.5 169.9
Investments Net. 26.6 18.6 15.9 11.5 25.0 18.0 12.7 22.9
Expenses and Claims 107.2 117.5 125.8 144.4 145.6 142.3 125.1 160.1
Claims and Other Contractual Obligations 63.1 74.7 76.1 88.0 93.0 97.8 76.5 100.1
Acquisition Cost 28.4 27.6 26.7 26.0 30.6 30.2 31.9 31.5
Policies Dividends 0.1 3.3 2.3 3.2 2.5 1.2 1.9 3.2
Other Reserves Increase 0.0 0.0 0.0 0.0 0.0 0.4 (0.0) (0.4)
Operating Expenses 15.6 11.9 20.7 27.2 19.5 12.8 15.0 25.7
Income Before Subsidiaries Results 33.2 34.3 19.7 (2.0) 22.3 26.1 23.0 32.7
Subsidiaries Result 0.3 (0.1) 0.4 (0.6) 0.5 1.1 5.1 0.9
Income Before Taxes 33.6 34.2 20.1 (2.6) 22.8 27.1 28.1 33.6
Income tax (1.6) 12.7 9.3 (12.3) 5.6 (3.6) 3.1 4.7
Deferred Income tax (18.9) 11.7 1.7 (5.8) 4.1 9.8 9.9 (7.1)
Net income 54.1 9.9 9.0 15.5 13.1 20.9 15.0 36.1
34
SEGUROS INBURSABalance Sheet
US GAAP (MM USD)
ASSETS Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Investments 845.2 927.1 977.1 984.6 1,076.6 953.5 991.5 1,228.2
Financing operation investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Negotiable Investments 282.6 344.9 402.3 497.2 468.0 463.9 500.2 650.2
Fixed Income 282.6 344.9 402.3 497.2 468.0 463.9 500.2 650.2
Equity 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Investements for Sale 504.9 492.8 480.4 394.7 511.3 388.9 415.4 505.3
Fixed Income 379.1 338.4 313.7 229.6 347.8 224.5 232.6 320.7
Equity 125.8 154.4 166.7 165.1 163.5 164.4 182.7 184.6
Held to Maturity Investments 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0
Investments on Real Estate for Leasing 11.6 12.0 11.8 11.5 11.4 11.1 11.1 11.3
Investments on Subsidiaries 2.4 10.8 15.7 14.8 15.4 15.4 19.9 21.6
Loans on policies 43.7 66.6 66.9 66.4 70.4 74.2 44.6 39.9
Cash 5.2 10.2 0.8 2.6 (2.5) 116.9 162.9 1.5
Interest Debtors 5.5 3.7 2.3 2.2 2.8 2.7 2.7 8.1
Premium debtors & Receivable 194.1 241.1 195.5 215.2 173.3 170.1 153.6 193.3
Reinsurers and receivable 123.6 143.7 118.2 104.6 105.1 104.5 85.4 89.4
Benefitts and claims 68.5 55.8 48.5 43.7 58.5 53.8 50.7 41.1
Policies reserves 55.1 87.9 69.7 60.9 46.6 50.7 34.7 48.3
Deferred Aquisition cost 59.2 63.9 58.1 58.5 57.7 58.4 57.4 60.8
Fixed Assets, net 46.1 46.9 43.7 42.2 42.4 59.5 40.4 42.1
Other assets 61.8 57.7 56.3 58.3 67.6 60.0 60.9 68.5
Total assets 1,340.8 1,494.4 1,452.0 1,468.4 1,523.1 1,525.6 1,554.7 1,691.9
35
LIABILITIES Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Technical reserves 681.5 732.2 731.6 730.1 761.3 737.9 737.7 791.0
Unearned premium reserve, claims pending for paid, life & health 218.2 234.1 273.3 283.1 303.8 296.2 320.8 357.3
Pending claims reserve, accidents & casualties and health 162.0 160.9 156.1 152.0 170.7 163.8 154.7 142.0
Other insurances fund 60.9 64.3 61.2 62.3 60.7 58.9 60.6 64.2
Unearned premiums reserve of accident & casualty, and health 240.5 272.8 241.0 232.7 226.1 219.1 201.5 227.5
Other reserves 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Reinsurances payable 31.1 63.0 43.8 47.9 26.1 27.2 29.0 34.1
Retained deposits 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Reinsurance premiums and payable 31.0 62.9 43.7 47.8 26.1 27.2 28.9 34.0
Deferred taxes 179.7 211.6 201.8 205.2 221.1 228.3 249.4 247.4
Income tax & profit sharing 26.5 15.8 26.6 11.2 18.5 2.0 2.3 14.6
Value Added Tax 26.4 29.6 24.5 28.6 23.6 23.6 19.9 24.5
Other labilities 64.5 84.2 70.8 75.5 77.4 80.8 80.8 93.6
Total liabilities 1,009.6 1,136.3 1,099.2 1,098.5 1,128.2 1,099.8 1,118.9 1,205.3
STOCKHOLDERS´ EQUITY
Paid in capital 52.1 52.1 52.1 52.1 52.1 52.1 52.1 52.1
Other reserves 21.4 40.8 43.9 49.8 58.8 63.3 71.5 79.5
Net Income 54.1 64.0 73.0 88.5 13.1 34.0 49.0 85.1
Retained earnings 419.6 219.4 209.4 209.0 298.5 298.2 297.8 305.6
Acummulated Deferred Taxes (112.7) (112.7) (112.7) (112.7) (112.7) (112.7) (112.7) (112.7)
Adjustments for Changes in Accounting Principles (160.1) 37.8 30.4 26.5 28.5 34.2 19.1 18.0
Gain on valuation of real estate 56.7 56.7 56.7 56.7 56.7 56.7 58.9 58.9
Total stockholders equity 331.1 358.1 352.8 369.9 394.8 425.8 435.8 486.5
Total liabilities and stockholders equity 1,340.8 1,494.4 1,452.0 1,468.4 1,523.1 1,525.6 1,554.7 1,691.9
36
PENSIONES INBURSAIncome Statement
(MM USD)
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Revenue 35.3 44.9 20.9 50.4 43.1 70.2 278.0 56.7
Premiums (1.3) 6.7 1.6 (6.5) (8.2) 10.8 (6.5) (13.5)
Investments Net. 36.6 38.2 19.3 56.9 51.3 59.4 284.5 70.2
Expenses and Claims 8.8 14.8 11.4 12.8 19.9 13.4 14.4 14.5
Claims and Other Contractual Obligations 14.5 15.8 15.9 14.5 16.8 14.8 15.4 15.4
Acquisition Cost 1.9 2.6 1.6 2.1 0.6 0.2 0.2 0.6
Policies Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other Reserves Increase 3.8 0.2 2.0 1.9 1.6 1.4 1.6 1.7
Operating Expenses (11.4) (3.8) (8.1) (5.7) 0.9 (3.0) (2.7) (3.3)
Income Before Taxes 26.5 30.0 9.5 37.6 23.1 56.9 263.5 42.2
Income tax 2.6 0.9 2.1 2.1 1.2 7.7 8.6 5.9
Deferred Income tax 23.1 4.1 6.1 (11.8) 1.4 11.9 87.5 (14.6)
Net income 0.8 25.0 1.3 47.2 20.5 37.3 167.5 50.9
37
PENSIONES INBURSABalance Sheet
(MM USD)
ASSETS Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Investments 1,352.3 1,393.8 1,504.1 1,664.2 1,861.0 1,946.3 2,201.0 2,361.5
Financing operation investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Negotiable Investments 242.0 235.2 400.9 532.7 253.0 19.6 476.2 914.4
Fixed Income 239.0 235.2 101.5 88.6 253.0 19.6 9.3 294.2
Equity 2.9 0.0 299.4 444.1 0.0 0.0 466.9 620.2
Investements for Sale 170.2 178.8 127.7 126.4 767.8 649.7 462.3 126.1
Fixed Income 169.7 178.1 126.9 125.5 623.1 370.7 329.0 124.6
Equity 0.5 0.7 0.8 0.9 144.7 279.0 133.3 1.5
Held to Maturity Investments 940.1 979.8 967.8 1,004.5 840.0 1,029.4 1,058.5 1,123.5
Derivatives 0.0 0.0 0.0 0.0 0.0 57.2 52.6 45.6
Investments on Real Estate for Leasing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Loans on policies 0.0 0.0 7.7 0.6 0.3 0.4 0.1 0.6
Guarantee investments 0.0 0.0 0.0 0.0 0.0 190.0 151.2 151.2
Cash 0.2 0.9 1.7 3.0 2.3 0.4 (0.0) 0.4
Interest Debtors 15.0 32.1 16.1 30.5 46.5 66.0 64.1 28.9
Premium debtors & Receivable 32.2 91.5 0.7 0.6 0.0 52.5 31.8 32.2
Reinsurers and receivable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Benefitts and claims 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Policies reserves 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Deferred Aquisition cost 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fixed Assets, net 79.5 81.0 72.0 3.2 67.9 68.2 105.0 105.9
Other assets 137.7 132.3 193.5 256.0 190.8 138.2 53.9 59.3
Total assets 1,617.0 1,731.5 1,788.1 1,957.5 2,168.5 2,271.6 2,455.7 2,588.2
38
LIABILITIES Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Technical reserves 910.9 953.3 915.7 918.1 939.7 928.1 951.6 992.9
Unearned premium reserve, claims pending for paid, life & health 886.6 927.9 891.5 894.0 914.9 903.8 926.6 966.7
Pending claims reserve, accidents & casualties and health 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other insurances fund 0.3 0.2 0.1 0.0 0.2 0.0 0.1 0.2
Unearned premiums reserve of accident & casualty, and health 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other reserves 24.0 25.2 24.1 24.1 24.6 24.3 24.9 26.0
Reinsurances payable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Retained deposits 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Reinsurance premiums and payable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Deferred taxes 89.6 97.2 106.1 116.2 125.7 125.4 203.8 194.6
Income tax & profit sharing 4.6 3.6 8.1 11.8 2.5 5.7 8.7 12.3
Value Added Tax 0.0 19.8 0.2 0.1 0.3 0.2 0.0 (3.0)
Other labilities 389.8 268.6 128.8 243.0 405.1 519.5 426.8 437.4
Total liabilities 1,394.9 1,342.4 1,159.0 1,289.3 1,473.4 1,578.9 1,591.0 1,634.1
STOCKHOLDERS´ EQUITY
Paid in capital 100.5 181.8 438.4 438.4 438.4 438.4 438.4 438.4
Other reserves 7.7 9.5 5.6 5.3 6.1 3.9 4.3 4.2
Net Income 0.8 25.8 27.1 74.3 20.5 57.8 225.3 276.2
Retained earnings 152.6 162.4 165.2 165.1 239.4 219.4 198.2 210.8
Acummulated Deferred Taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Adjustments for Changes in Accounting Principles (50.9) (42.8) (71.1) (82.2) (79.0) (96.1) (91.7) (73.7)
Minority Interest 11.4 52.5 64.0 67.5 69.8 69.3 90.3 98.2
Total stockholders equity 222.1 389.1 629.1 668.3 695.2 692.7 864.7 954.1
Total liabilities and stockholders equity 1,617.0 1,731.5 1,788.1 1,957.5 2,168.5 2,271.6 2,455.7 2,588.2
39
OPERADORA INBURSAIncome Statement
US GAAP (MM USD)
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Earnings from Investment Sales 0.1 0.1 0.0 (1.8) 0.1 0.1 0.0 0.1
Asset Management Income 3.2 3.7 3.7 4.5 4.1 4.1 4.2 4.4
Earnings form Interest 1.4 (0.5) 0.1 1.9 0.0 0.2 0.1 0.2
Unrealized Gain on Portfolio Valuation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (0.0)
Total Earnings 4.7 3.3 3.8 4.6 4.2 4.3 4.3 4.7
General Expenses 0.2 0.2 0.2 3.5 0.3 0.2 0.2 1.1
Total expenses 0.2 0.2 0.2 3.5 0.3 0.2 0.2 1.1
Earnings Before Taxes 4.6 3.1 3.5 1.1 3.9 4.2 4.1 3.6
Incurred Income Tax & Profit Sharing 1.1 1.2 1.2 1.1 1.3 1.5 1.3 1.1
Defferred Income Tax 0.5 0.4 0.5 (5.2) 1.1 0.4 0.5 0.5
Net Income Before Deferred Accounts 3.0 1.5 1.9 5.2 1.6 2.3 2.3 2.0
Earnings from subsidiaries 0.5 3.1 1.4 (5.9) 3.0 0.9 1.8 2.6
Unadjusted for monetary position result 3.5 4.6 3.3 (0.7) 4.6 3.2 4.0 4.6
Net income result actualization 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net income 3.5 4.6 3.3 (0.7) 4.6 3.2 4.0 4.6
40
OPERADORA INBURSABalance Sheet
US GAAP (MM USD)
ASSETS Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Cash 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Banks 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Negotiable Instruments 19.7 4.3 6.5 8.8 10.9 4.8 7.5 10.6
Sundry Debtors 1.1 1.3 1.2 1.3 1.4 1.3 1.4 1.5
Permanent investments 22.1 25.4 25.4 26.3 29.5 29.6 31.3 35.0
Receivable Taxes 1.1 2.8 3.7 4.6 1.8 3.2 4.4 0.4
TOTAL ASSETS 44.1 33.7 36.8 41.0 43.6 38.9 44.7 47.6
LIABILITIESSundry Creditors 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Payable Taxes 1.1 2.1 3.5 4.6 1.8 2.7 4.0 0.4
Deferred Income Tax 1.6 0.6 1.2 1.6 2.3 2.6 3.1 3.6
TOTAL LIABILITIES 2.9 2.7 4.8 6.2 4.0 5.3 7.1 4.0
STOCKHOLDERS´ EQUITYPaid in Capital 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3
Legal Reserve 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Retained Earnings 45.0 45.0 45.0 45.0 28.0 50.8 50.8 50.8
Surplus (deficit) from equity restatement 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net income 3.5 8.1 11.4 10.7 4.6 7.9 11.9 16.5
Forex effect on Stockholders´equity (8.8) (23.5) (25.9) (22.5) 5.3 (26.6) (26.7) (25.4)
TOTAL STOCKHOLDERS´ EQUITY 41.2 31.0 32.0 34.8 39.6 33.6 37.6 43.5
TOTAL LIABILITIES & STOCKHOLDERS´ EQUITY 44.1 33.7 36.8 41.0 43.6 38.9 44.7 47.6
41
FIANZAS GUARDIANA INBURSAIncome Statement
US GAAP (MM USD)
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Revenue 5.2 8.9 6.8 6.8 6.0 9.9 12.2 3.4
Premiums 4.4 8.0 7.0 7.7 5.2 8.5 5.9 9.7
Investments Net. 0.8 0.7 0.4 0.8 0.5 (0.5) 0.4 (0.0)
Earnings (losses) realized on investments 0.0 0.2 (0.6) (1.7) 0.4 1.9 6.0 (6.3)
0.0
Benefitts, Expenses and Claims 2.5 3.2 4.1 4.7 4.0 1.8 4.5 (2.0)
Benefitts, Claims and Adjustments 2.7 2.9 3.9 4.8 3.9 2.0 3.8 4.7
Acquisition Cost (0.5) 0.1 (0.4) (0.7) (0.4) (0.7) 0.1 (0.5)
Operating Expenses 0.3 0.3 0.7 0.5 0.5 0.4 0.6 (6.2)
Income Before Taxes 2.8 5.6 2.7 2.1 2.0 8.1 7.7 5.4
Income tax 0.3 0.3 4.8 1.8 1.0 1.2 1.4 2.2
Deferred Income tax 0.3 0.7 0.3 (5.1) (0.5) (0.0) 0.0 0.3
Net income 2.1 4.6 (2.4) 5.4 1.5 6.9 6.3 3.0
42
FIANZAS GUARDIANA INBURSABalance Sheet
US GAAP (MM USD)
ASSETES Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Investments 56.5 64.9 64.0 66.1 66.2 63.3 74.7 81.0
Negotiable Investments 30.1 27.9 23.6 23.2 0.0 19.9 (0.5) 29.2
Fixed Income 30.1 27.9 23.6 23.2 0.0 19.9 (0.6) 29.2
Equity 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0
Investements for Sale 22.8 33.3 36.5 38.9 62.2 38.8 70.1 46.3
Fixed Income 3.3 5.0 0.0 8.4 21.6 10.7 23.8 19.7
Equity 19.5 28.3 36.4 30.6 40.6 28.1 46.3 26.6
Loans on policies 3.6 3.7 3.9 3.9 4.0 4.6 5.2 5.6
Cash 0.1 0.4 0.2 0.5 0.3 0.3 0.5 0.2
Premium debtors & Receivable 3.4 4.1 3.8 3.5 3.7 4.4 4.0 6.5
Reinsurers and receivable 2.6 2.5 2.2 3.1 3.8 6.5 6.0 3.5
Benefitts and claims 0.1 0.1 0.1 0.1 0.1 2.7 2.6 0.0
Policies reserves 2.5 2.5 2.2 3.0 3.7 3.8 3.4 3.5 Deferred Aquisition cost (0.7) (1.0) (0.6) (1.1) (1.3) (1.3) (1.0) (1.5)
Fixed Assets, net 2.1 2.2 2.2 2.0 1.9 1.9 1.9 1.9
Other assets 0.9 2.0 2.7 3.2 1.3 3.7 5.2 5.5
Total assets 64.9 75.1 74.5 77.3 75.8 78.8 91.2 97.0
43
LIABILITIES Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Technical reserves 2.9 1.3 0.7 0.8 2.8 1.0 2.8 2.6
Pending claims reserve, accidents & casualties and health
0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Unearned premiums reserve of accident & casualty, and health 2.8 1.2 0.6 0.7 2.7 1.0 2.7 2.5
Other reserves 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Reinsurances payable 1.7 1.9 1.6 1.3 1.4 1.7 1.6 0.9
Retained deposits 0.6 0.6 0.6 0.6 0.6 0.6 0.5 0.6
Reinsurance premiums and payable 1.1 1.3 1.0 0.7 0.9 1.1 1.2 0.4
Income tax & profit sharing 8.5 10.2 10.7 7.1 7.2 7.2 9.1 7.0
Value Added Tax 0.7 0.8 0.8 0.9 0.8 0.8 0.9 1.2
Other labilities 2.1 3.1 7.6 9.2 3.1 5.6 6.9 7.5
Total liabilities 16.0 17.3 21.3 19.2 15.3 16.2 21.5 19.2
STOCKHOLDERS´ EQUITY
Paid in capital 8.3 11.0 11.0 11.0 11.0 11.0 11.0 11.0
Other reserves 2.1 2.1 3.4 5.2 5.5 6.1 6.6 7.2
Net Income 2.1 6.7 4.4 9.7 1.5 8.5 14.8 17.7
Retained earnings 39.0 40.7 36.6 34.5 44.9 38.2 38.1 42.6
Acummulated Deferred Taxes (3.6) (3.8) (3.6) (3.5) (3.5) (3.4) (3.4) (3.5)
Others 1.0 1.1 1.4 1.1 1.1 2.2 2.7 2.8
Adjustmens for changes on Principle Accounts
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total stockholders equity 48.9 57.8 53.2 58.1 60.5 62.5 69.8 77.8
Total liabilities and stockholders equity 64.9 75.1 74.5 77.3 75.8 78.8 91.2 97.0
44
INVERSORA BURSATILIncome Statement
US GAAP (MM USD)
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Earnings from management and custody 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Earnings from mutual funds operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Interest Income 0.2 0.1 0.1 0.1 0.0 0.1 0.3 (0.1)
Comissions 4.3 8.2 8.3 9.1 16.9 15.3 8.8 12.9
Dividends from investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Income from sale of securities 1.6 5.5 2.1 3.4 4.9 3.7 2.7 6.3
Subsidiaries' Net Income 0.1 0.2 0.1 0.2 0.2 0.2 0.2 0.2
Other Income 0.1 0.1 0.0 0.2 0.0 0.0 0.1 0.4
Total Earnings 6.3 14.1 10.7 13.0 22.0 19.3 12.1 19.7
Interest expenses (0.0) 0.0 0.0 0.0 0.0 0.0 (0.0) 0.0
Comissions and Fees 0.8 0.8 1.6 1.1 0.7 0.9 1.1 1.7
Forex exchange losses 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Personnel Expenses 0.1 0.0 (0.0) (0.0) 0.0 0.0 0.0 0.0
General Expenses 3.1 3.7 4.0 3.4 4.2 3.5 3.3 6.6
Contingency Fund 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Depreciations and Amortizations 0.1 0.2 0.2 0.2 0.2 0.1 0.1 0.1
Losses from subsidiaries 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Losses from real estate sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Incurred Income Tax 0.6 1.9 1.1 1.8 4.5 4.1 1.5 1.3
Incurred Employee Profit Sharing 0.0 0.0 0.0 (0.0) 0.5 (0.5) 0.0 (0.0)
Deferred taxes & Employee profit sharing 0.3 1.1 0.3 0.5 0.4 0.9 0.4 1.2
Total Expenses 5.2 7.7 7.2 7.0 10.5 9.1 6.5 11.0
NET INCOME 1.2 6.4 3.5 6.0 11.5 10.1 5.7 8.7
45
INVERSORA BURSATILBalance Sheet
US GAAP (MM USD)
ASSETS Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Cash & Banks 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Financial Instruments 67.2 70.2 70.5 75.5 87.6 82.3 90.4 99.8
Negotiable 67.2 70.2 70.5 75.5 87.6 82.3 90.4 99.8
Under repurchase receivable agreements 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Repo Operations 3.3 5.0 3.7 5.4 4.0 1.5 0.6 0.9
Other accounts receivable 0.5 0.3 0.3 0.3 0.7 0.4 0.7 0.6
Fixed assets,net 2.8 2.9 2.8 2.6 2.4 2.3 2.2 2.5
Permanent equity investments 3.7 3.8 3.7 3.8 4.1 3.8 4.1 4.2
Other Assets 4.7 5.6 6.3 7.2 6.9 11.8 13.0 7.3
TOTAL ASSETS 82.1 87.9 87.3 94.8 105.6 102.3 111.1 115.3
LIABILITIES Repo Operations 3.3 5.0 3.7 5.3 3.9 1.5 0.8 1.2Other Account Payable 8.8 10.7 11.3 12.1 11.6 14.1 16.6 9.8 Income Tax & Employee profit sharing provision 6.1 7.0 7.4 9.5 8.3 11.1 13.5 6.6
Sundry creditors & other accounts payable 2.7 3.7 3.9 2.6 3.3 3.0 3.1 3.2Deferred taxes 0.5 1.7 1.9 2.3 3.1 3.5 4.0 5.3
Total Liabilities 12.6 17.4 16.9 19.7 18.6 19.1 21.3 16.3
STOCKHOLDERS´ EQUITYPaid-in capital 19.9 22.3 22.3 22.3 22.3 25.0 25.0 25.0
Earned Capital 49.6 48.2 48.1 52.7 64.8 58.2 64.8 74.0Capital reserves 6.8 7.0 7.1 7.1 7.1 7.8 7.8 7.8Retained earnings 35.7 25.4 25.3 25.3 42.4 27.6 27.6 27.6Net icome 1.2 7.5 11.1 17.1 11.5 21.6 27.3 36.0
Forex effect on Stockholders´equity 5.9 8.3 4.7 3.3 3.8 1.2 2.1 2.6
Total Stockholders' Equity 69.5 70.5 70.5 75.1 87.1 83.2 89.8 99.0
TOTAL LIABILITIES & STOCKHOLDERS´EQUITY 82.1 87.9 87.3 94.8 105.6 102.3 111.1 115.3
46
CNBV GAAPFinancial Statements
47
Consolidated Income Statement (quarterly)
MM of constant pesos as of December 31, 2004 AcumulatedJan-Dec
(MM Ps.) 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 2004 2003
Interest Income 2,575.4 3,260.4 2,767.8 2,046.9 2,656.4 2,531.8 2,331.1 2,857.5 3,063.4 10,783.7 10,731.5
Interest Expense (1,482.6) (2,451.7) (2,012.5) (1,481.4) (2,106.9) (1,806.0) (1,544.5) (2,053.8) (2,724.8) (8,129.0) (8,052.5)Monetary Position (293.6) (120.5) (35.3) (84.0) (212.9) (167.3) (150.1) (255.1) (430.1) (1,002.6) (452.8)
FINANCIAL MARGIN 799.2 688.1 720.0 481.4 336.6 558.5 636.5 548.6 (91.5) 1,652.1 2,226.1
Loan Loss Provisions 140.2 327.2 331.8 309.6 216.0 273.3 339.9 282.4 381.0 1,276.7 1,184.6
RISK ADJUSTED NII 659.0 360.9 388.1 171.8 120.6 285.2 296.6 266.1 (472.5) 375.4 1,041.5
Comissions & Tariffs 185.7 210.4 422.5 276.1 318.0 391.4 382.8 348.4 509.0 1,631.6 1,226.9Market-Related Income (236.3) 239.9 (705.3) 86.3 791.2 (261.8) 1,022.4 154.8 1,006.4 1,921.8 412.1
TOTAL OPERATING INCOME 608.4 811.2 105.3 534.2 1,229.9 414.8 1,701.8 769.4 1,042.8 3,928.8 2,680.5
Administrative Expenses 484.6 323.1 368.8 411.6 433.1 395.0 393.0 415.5 525.4 1,728.9 1,536.6
OPERATING INCOME 123.8 488.1 (263.5) 122.5 796.8 19.9 1,308.8 353.8 517.4 2,199.8 1,143.9
Other Expenses (Products) 93.7 151.7 (14.6) 15.0 114.3 185.1 (176.2) (25.3) (33.5) (50.0) 266.3
NET INCOME BEFORES TAXES 30.1 336.4 (248.9) 107.6 682.5 (165.2) 1,485.0 379.2 550.9 2,249.8 877.6
Income Tax & Employee profit sharing (135.6) 137.8 32.8 55.0 49.5 96.8 79.3 49.0 33.0 258.2 275.0Deferred Taxes 140.7 73.1 131.1 84.9 (46.9) (131.0) 414.8 130.9 197.8 612.5 242.1
NET INCOME BEFORE SUBSIDIARIES 25.0 125.5 (412.8) (32.3) 680.0 (131.0) 990.9 199.3 320.1 1,379.2 360.4
Participated net income from subs. 234.1 723.9 615.9 299.5 416.0 785.2 157.9 1,964.4 999.6 3,907.1 2,055.3
RESULTS FROM CONTINUED OPERATION 259.1 849.4 203.1 267.2 1,096.0 654.1 1,148.8 2,163.7 1,319.7 5,286.3 2,415.7
Extraordinary Income 3.3 0.0 0.0 0.0 13.2 0.0 0.0 0.0 90.4 90.4 13.2
NET INCOME 262.4 849.4 203.1 267.2 1,109.1 654.1 1,148.8 2,163.7 1,410.1 5,376.7 2,428.9
MINORITARY INTEREST 1.7 2.1 7.7 2.2 (0.2) 2.7 0.9 1.9 0.7 6.1 11.8
48
GRUPO FINANCIERO INBURSA Consolidated Balance Sheet
MM Ps as of December 31, 2004
ASSETS Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
Cash & due from Banks 4,480.4 8,281.8 7,197.2 6,961.0 9,797.0 7,494.3 6,507.0 9,928.7
Financial Instruments 6,223.0 14,543.9 14,115.4 13,141.6 14,780.4 12,799.4 21,019.9 20,919.3
Negotiable 6,124.0 14,427.5 8,173.8 7,624.0 10,037.3 6,817.8 14,979.8 17,733.0For Sale 2.0 2.0 2.0 1.9 1.9 1.9 1.9 1.9Held to Maturity 97.0 114.3 5,939.6 5,515.6 4,741.2 5,979.7 6,038.2 3,184.4Unlisted Securities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Repos & Derivatives 84.7 199.9 91.6 124.4 299.6 1,937.3 1,741.4 1,443.7Repo Operations 84.7 85.9 91.6 124.4 299.6 50.9 18.7 20.6Securities to be received in credit Operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Derivatives 0.0 114.0 0.0 0.0 0.0 1,886.5 1,722.7 1,423.1
LOANS 50,581.9 48,478.0 40,358.8 45,322.9 47,474.6 48,336.2 48,409.9 54,737.8Commercial 46,302.7 43,793.8 36,693.6 41,513.1 43,555.5 44,223.4 44,184.2 50,478.5Interbank 4,176.4 4,593.8 737.1 896.5 952.4 941.4 800.8 809.7Consumer 8.1 9.8 2,867.2 2,810.1 2,773.2 2,895.2 2,924.9 2,877.9Housing 94.5 80.4 60.6 102.9 193.3 275.9 500.1 571.7Federal Government 0.2 0.2 0.3 0.3 0.3 0.3 0.0 0.0FOBAPROA/IPAB 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
PAST-DUE LOANS 822.8 216.7 134.4 196.2 195.9 180.9 232.3 337.6
TOTAL GROSS LOANS 51,404.7 48,694.7 40,493.2 45,519.1 47,670.5 48,517.1 48,642.3 55,075.4
Loan Loss Reserves 4,512.3 4,755.1 5,183.3 5,385.7 5,563.9 6,011.7 6,155.3 6,357.3
TOTAL NET LOANS 46,892.5 43,939.6 35,309.9 40,133.4 42,106.6 42,505.5 42,487.0 48,718.1
Receivables,Sundry Debtors & Adv. Payments 9,500.1 12,158.1 4,001.3 821.3 3,120.2 3,916.6 2,513.9 3,178.0
Fixed Assets (net) 593.0 633.6 710.2 703.4 667.8 664.4 643.2 648.6
Repossessed Assets 21.2 21.2 21.0 20.7 20.4 20.3 20.0 19.7
Permanent Equity Investments 9,371.0 9,023.1 12,382.1 12,742.3 13,427.7 13,750.2 15,622.7 16,650.3
Deferred Taxes (net) 13.0 13.0 0.0 0.0 0.0 0.1 0.0 0.0
Other assets,deferred charges & intangible 503.1 527.0 541.8 643.6 680.5 834.6 722.4 587.1
TOTAL ASSETS 77,681.9 89,341.1 74,370.5 75,291.7 84,900.2 83,922.8 91,277.5 102,093.5
49
LIABILITIES Mar-03 Jun-03 Sep-03 Dic-03 Mar-04 Jun-04 Sep-04 Dic-04
DEPOSITS 33,916.5 37,689.2 32,860.3 33,402.4 41,624.7 41,342.3 46,239.6 53,441.7
Demand Deposits 8,651.2 9,366.2 10,444.9 11,516.2 12,495.1 13,314.5 14,708.5 16,690.4
Time Deposits 23,319.9 26,375.1 22,415.4 21,886.2 29,129.6 28,027.8 31,531.1 36,751.4Bank Bonds 1,945.4 1,947.9 0.0 0.0 0.0 0.0 0.0 0.0
INTERBANK LOANS & OTHER 2,777.9 6,149.6 2,378.8 4,980.0 3,731.8 2,701.9 3,106.9 2,814.0
589.6 62.7 1,070.2 1,342.7 1,171.5 1,064.6 920.3 732.8Repo Operations 76.3 62.7 53.7 96.2 79.3 35.8 11.2 20.0Credit related operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Derivatives 513.3 0.0 1,016.5 1,246.5 1,092.2 1,028.8 909.1 712.8
OTHER ACCOUNTS PAYABLE 7,613.0 12,961.5 5,251.2 1,672.4 4,027.3 3,622.7 3,898.4 6,303.5Income tax & Employee profit sharing 402.9 231.1 270.7 111.0 177.8 238.7 297.2 92.4Other accounts payable 7,210.2 12,730.4 4,980.5 1,561.4 3,849.5 3,384.0 3,601.3 6,211.1
DEFERRED TAXES 257.0 368.5 434.2 378.6 228.9 638.5 754.9 872.9DEFERRED CREDITS 387.2 156.7 187.4 187.3 199.8 234.3 1.0 0.9
TOTAL LIABILITIES 45,541.3 57,388.1 42,182.1 41,963.5 50,984.0 49,604.4 54,921.2 64,165.9
STOCKHOLDERS' EQUITY
SUSCRIBED CAPITAL 13,879.5 13,914.3 13,869.3 13,878.2 13,894.5 13,899.0 13,851.9 13,912.6
Paid-in Capital 12,993.9 13,025.6 12,983.3 12,991.7 13,007.0 13,011.1 12,967.0 13,023.8
Share Subscription Premium 885.6 888.7 886.0 886.5 887.6 887.9 884.9 888.7
Subordinated debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EARNED CAPITAL 18,229.2 17,999.0 18,277.3 19,408.4 19,977.3 20,374.2 22,457.4 23,967.1
Capital Reserves 1,910.5 3,199.4 3,161.9 3,163.9 3,167.6 3,251.3 3,240.3 3,254.5Retained Earnings 31,631.0 29,869.7 29,779.5 29,798.8 32,253.5 31,250.4 31,144.5 31,280.9
Valuation surplus (Deficit) of available for sale instruments0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Result from conversion of foreign transactions 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Valuation effects on affiliates and associated firms (1,225.3) (1,127.2) (1,031.5) (1,021.4) (1,127.8) (954.6) (967.0) (952.1)
Surplus (deficit) from Equity Restatement (14,934.4) (14,985.6) (14,940.3) (14,950.0) (14,967.5) (14,972.3) (14,921.6) (14,986.9)
Net Income of the period 847.3 1,042.6 1,307.7 2,417.1 651.5 1,799.4 3,961.2 5,370.6
Minority Interest 31.9 39.7 41.8 41.6 44.4 45.3 47.0 47.9
TOTAL STOCKHOLDERS´ EQUITY 32,140.6 31,953.0 32,188.4 33,328.2 33,916.2 34,318.4 36,356.3 37,927.5
LIABILITIES & STOCKHOLDERS' EQUITY 77,681.9 89,341.1 74,370.5 75,291.7 84,900.2 83,922.8 91,277.5 102,093.5
50
GRUPO FINANCIERO INBURSAMEMORANDUM ACCOUNTSMM Ps as of December, 2004
CUSTOMER POSITION ACCOUNTS Dic-04 Dic-04
CUSTOMER CURRENT ACCOUNTS (117.1) REGISTRY ACCOUNTS 763,682.4
Customer bank balances 1.5 Guarantees granted 0.0
Custumer transaction liquidations (118.6) Assets under trust 176,514.6
Client loans 0.0 Assets under custody or administration 575,901.2
Irrevocable lines of credit granted 3,209.3
CUSTOMER SECURITIES 694,323.0 Shares held in custody 1,113.0
Assets in custody or under administration 693,297.8 Other contingent obligations 6,944.2
Assets received in guarantee 1,025.2 REPO OPERATIONS
6.6
TRANSACTIONS ON BEHALF OF CUSTOMERS46,126.9 Receivables on repurchase agreements 79,778.6
Customer Repos 46,126.9 Reporchase agreement creditors (79,772.1)
Customer Securities Loans 0.0 (6.3)
Purchase of Derivatives 0.0 Repurchase agreement debtors 43,513.3
Payables on repurchase agreements (43,519.6)
TOTAL CUSTOMER POSITION 740,332.8 TOTAL OWN POSITION 763,682.7
COMPANY POSITION ACCOUNTS
51
FIXED CAPITAL
STOCK PREMIUM
CAPITAL RESERVES
RETAINED EARNINGS
SURPLUS (DEFICIT) FROM
EQUITY RESTATEMENT
NO MONETARY
ASSEST RESULT
NET INCOME
MINORITY INTEREST
TOTAL STOCKHOLDE
RS' EQUITY
BALANCE AT DECEMBER 31st 2003 13,023.8 888.7 3,171.7 29,872.4 (14,986.9) (1,024.0) 2,422.9 41.7 33,410.4
CHANGES INHERENT TO SHAREHOLDER´S DECISIONS
Transfer of 2003 results 2,422.9 (2,422.9) 0.0
Dividend payment (931.6) (931.6)
Reserve creation for future aquisition of stocks 82.8 (82.8) 0.0
Repurchase of stocks 0.0
CHANGES INHERENT TO OPERATION
Net Income for the exercise 5,370.6 5,370.6
No monetary assets results 71.9 71.9
Minority Interest 6.2 6.2
BALANCE AT DECEMBER 31, 2004 13,023.8 888.7 3,254.5 31,280.9 (14,986.9) (952.1) 5,370.6 47.9 37,927.5
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITYAT DECEMBER 2004
SUSCRIBED CAPITAL EARNED CAPITAL
(MM PS)
52
Dic-04
OPERATING ACTIVITIESNet Income 5,370.6
Subsidiaries' Income (3,907.1)
Depreciation & Amortization 161.5Loan Loss Reserves 1,276.7
Market Related Result (1,921.8)Deferred taxes 612.5
1,592.3
Cash increase (decrease) from funding 19,956.8Cash increase (decrease) from Loan Portfolio (9,762.1)
Cash increase (decrease) from Trading Operation (5,823.4)Cash increase (decrease) from Derivative Financial Instruments (1,932.2)
Cash increase (decrease) in Accounts Payable-Recivable 2,025.4Banking Loans & Other Financial Institutions (2,178.3)
2,286.1
Cash flow from operating activities 3,878.4
Financing Activities
Increase (decrease) of Stocholders' Equity 0.0Dividend payment (931.6)
Cash Flow From Financing Activities (931.6)
Investments Activities
Buy(sell) of fixed assets and permanent stocks 3.8Decrease of deferred loans 0.0Decrease on personnel loans
Cash Flow From Investment Activities 3.8
Net Increase in Cash 2,950.6
Cash at beginning of the period 6,978.2
Cash at end of period 9,928.7
GRUPO FINANCIERO INBURSASTATEMENT OF CHANGES IN FINANCIAL SITUATION AT DECEMBER 31, 2004
(MM PS)
53
BANCO INBURSAConsolidated Income Statement
Acumulated (MM constant Ps. as of December, 2004) 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 DEC '04 DEC '03Interest Income 2,436.9 2,007.3 1,561.8 1,695.6 1,815.9 1,887.9 2,361.5 2,321.2 8,386.6 7,701.6Interest Expense 1,570.9 1,323.0 1,062.8 1,217.2 1,164.6 1,169.6 1,605.7 1,917.0 5,856.9 5,173.8Monetary Position (115.9) (36.6) (78.8) (156.9) (158.9) (125.2) (237.5) (398.7) (920.4) (388.1)
Financial Margin 750.1 647.7 420.2 321.6 492.4 593.1 518.3 5.4 1,609.3 2,139.7
Loan Loss Provisions 327.2 331.8 309.6 216.0 273.3 339.9 282.4 381.0 1,276.7 1,184.6
Risk Adjusted Net Interest Income 422.9 315.9 110.7 105.6 219.1 253.2 235.9 (375.6) 332.7 955.0
Comissions and Fees 170.1 337.4 162.5 211.5 197.4 221.6 259.0 379.5 1,057.5 881.5Market-Related Income 89.2 (760.5) 69.3 761.3 (312.0) 982.1 109.4 822.0 1,601.4 159.3
Operating Revenues 682.2 (107.3) 342.4 1,078.5 104.5 1,456.9 604.4 825.9 2,991.6 1,995.8
Non-Interest Expense 271.5 304.6 306.0 351.7 311.9 339.7 356.5 410.5 1,418.5 1,233.9
Operating Income 410.6 (411.9) 36.4 726.8 (207.4) 1,117.2 247.9 415.4 1,573.1 761.9
Other Income (Expenses) (144.2) 4.7 (21.5) (158.2) (169.7) 143.6 10.9 9.6 (5.5) (319.2)
Earnings Before Taxes 266.5 (407.2) 14.9 568.6 (377.1) 1,260.9 258.8 425.0 1,567.6 442.7
Incurred Income Tax & Profit Sharing 116.6 (4.0) 26.5 13.1 27.2 11.3 14.2 1.8 54.5 152.1Deferred Income Tax 67.8 112.6 77.0 (56.6) (148.8) 404.3 119.4 179.1 553.9 200.8
Net Income Before Subsidiaries' Net Income 82.1 (515.8) (88.6) 612.1 (255.4) 845.3 125.2 244.1 959.2 89.8
Subsidiaries' Net Income 398.4 37.1 (13.4) 35.9 118.9 (60.3) 161.5 49.8 269.9 458.0
Continous Operations' Net Income 480.5 (478.7) (102.0) 648.0 (136.5) 785.1 286.7 294.0 1,229.2 547.8
Discontinued Operations & Extraordinary Items 0.0 0.0 0.0 13.2 0.0 0.0 0.0 90.4 90.4 13.2Minority Interest (2.1) (7.7) (2.2) 0.2 (2.7) (0.9) (1.9) (0.7) (6.1) (11.8)
Net Income 478.4 (486.4) (104.1) 661.4 (139.2) 784.2 284.8 383.7 1,313.5 549.2
54
BANCO INBURSAConsolidated Balance Sheet ( MM Constant Ps. as of December, 2004 )
Assets 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Cash & Due From Banks 4,480.3 8,281.7 7,197.1 6,959.0 9,797.0 7,496.6 6,507.4 9,928.7
Financial Instruments 4,836.6 12,237.3 12,603.5 11,531.7 13,240.1 11,725.0 19,852.6 19,651.7 Negotiable 4,737.6 12,121.0 6,661.9 6,014.2 8,497.0 5,743.4 13,812.6 16,465.4 For Sale 2.0 2.0 2.0 1.9 1.9 1.9 1.9 1.9 Held to Maturity 97.0 114.3 5,939.6 5,515.6 4,741.2 5,979.7 6,038.2 3,184.4 Unlisted Securities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Repos & Derivatives 46.6 138.1 48.3 61.0 46.2 1,919.0 1,734.7 1,433.1 Repo Operations 46.6 24.1 48.3 61.0 46.2 32.6 12.0 10.0 Securities to be received in credit Operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Derivatives 0.0 114.0 0.0 0.0 0.0 1,886.5 1,722.7 1,423.1LOANS 50,642.0 48,551.2 40,452.0 45,415.9 47,566.1 48,417.4 48,475.9 54,802.3 Commercial 46,362.8 43,788.0 36,786.8 41,606.2 43,647.0 44,304.6 44,250.2 50,543.0 Interbank 4,176.4 4,672.7 737.1 896.5 952.4 941.4 800.8 809.7 Consumer 8.1 9.8 2,867.2 2,810.1 2,773.2 2,895.2 2,924.9 2,877.9 Housing 94.5 80.4 60.6 102.9 193.3 275.9 500.1 571.7 Federal Government 0.2 0.2 0.3 0.3 0.3 0.3 0.0 0.0 FOBAPROA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Past-Due Loans 822.8 216.7 134.4 196.2 195.9 180.9 232.3 337.6
Total Gross Loans 51,464.8 48,767.9 40,586.4 45,612.1 47,762.0 48,598.3 48,708.2 55,139.9
Preventive Provision for Credit Risks (4,512.3) (4,755.1) (5,183.3) (5,385.7) (5,563.9) (6,011.7) (6,155.3) (6,357.3)
Total Net Loans 46,952.6 44,012.8 35,403.2 40,226.4 42,198.1 42,586.7 42,553.0 48,782.6
Receivables,Sundry Debtors & Adv. Payments 9,478.1 10,409.5 3,982.0 799.3 3,088.4 3,887.0 2,486.5 3,150.5Fixed Assets (net) 450.0 479.4 531.3 532.8 509.6 513.5 496.3 498.5Repossessed Property 21.2 21.2 21.0 20.7 20.4 20.3 20.0 19.7Permanent Equity Investments 4,760.1 2,811.1 2,948.8 2,901.5 2,904.4 3,025.5 3,148.3 3,217.3Deferred taxes (net) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Other assets,deferred charges & intangible 433.9 431.0 420.2 577.8 583.5 663.6 526.5 505.2TOTAL ASSETS 71,459.5 78,822.1 63,155.3 63,610.3 72,387.8 71,837.2 77,325.2 87,187.2
55
LIABILITIES 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Deposits 33,932.7 38,066.2 32,875.4 33,404.9 41,633.9 41,353.7 46,251.1 53,446.7 Demand Deposits 8,667.3 9,391.5 10,460.0 11,518.8 12,504.3 13,325.9 14,720.0 16,695.3 Time Deposits 23,319.9 26,726.8 22,415.4 21,886.2 29,129.6 28,027.8 31,531.1 36,751.4 Bank Bonds 1,945.4 1,947.9 0.0 0.0 0.0 0.0 0.0 0.0
Interbank Loans & Other 2,777.8 6,149.6 2,378.6 4,980.0 3,731.8 2,701.9 3,106.9 2,814.0Repo Operations 37.4 6.5 10.5 33.0 34.0 17.6 2.5 6.4Credit Related Operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Derivatives 513.3 0.0 1,016.5 1,246.5 1,092.2 1,028.8 909.1 712.8Other Accounts Payable 7,159.1 12,666.0 4,906.7 1,496.0 3,802.2 3,335.3 3,554.0 6,166.3Income Tax & Employee Profit Sharing 317.1 123.5 151.8 30.9 63.3 72.7 90.0 14.8Deferred Taxes 227.5 336.0 406.4 345.8 175.4 577.9 683.9 777.2Deferred Credits 387.1 156.7 187.4 187.3 199.8 234.3 1.0 0.9
TOTAL LIABILITIES 45,352.1 57,504.4 41,933.3 41,724.4 50,732.6 49,322.3 54,598.5 63,939.1
SUSCRIBED CAPITAL 13,813.8 13,861.1 13,819.3 13,828.2 13,844.4 13,848.8 13,801.9 13,862.4 Paid-in Capital 13,813.8 13,861.1 13,819.3 13,828.2 13,844.4 13,848.8 13,801.9 13,862.4 Share subscription premium 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EARNED CAPITAL 12,293.6 7,456.6 7,402.7 8,057.7 7,810.7 8,666.1 8,924.8 9,385.7 Capital Reserves 4,109.5 4,356.1 4,343.0 4,345.8 4,350.9 4,407.3 4,392.3 4,411.6 Retained Earnings 17,018.4 12,421.4 12,383.9 12,391.9 12,956.3 12,792.7 12,749.3 12,805.2 Income of Changes on Accounting Principles 28.6 52.7 123.1 112.2 (7.6) 172.8 171.5 213.8 Available for Sale (0.0) 0.0 0.0 (0.0) (0.0) (0.0) (0.0) (0.0) Surplus (deficit) from equity restatement (9,373.1) (9,405.2) (9,376.8) (9,382.8) (9,393.9) (9,396.8) (9,365.0) (9,406.0) Net income of the period 478.4 (8.1) (112.2) 549.2 (139.2) 645.0 929.8 1,313.5 Minority Interest 31.8 39.6 41.7 41.5 44.3 45.1 46.9 47.8Total Stockholders´ Equity 26,107.4 21,317.7 21,221.9 21,885.9 21,655.1 22,514.9 22,726.8 23,248.1LIABILITIES & STOCKHOLDERS´ EQUITY 71,459.5 78,822.1 63,155.3 63,610.3 72,387.8 71,837.2 77,325.2 87,187.2
56
MEMORANDUM ACCOUNTSMM Constant Ps. as of December, 2004 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Guarantees Granted 29.1 26.6 10.8 10.8 5.2 14.0 0.0 0.0
Other Contingent Obligations 11,363.5 11,878.7 10,673.0 10,489.3 8,923.8 8,978.5 8,821.6 6,816.7
Irrevocable Lines of Credit Granted 2,345.7 2,288.5 2,133.9 2,063.6 2,210.0 2,966.1 2,840.5 3,209.3
Goods in Trust or Mandate 136,343.4 137,867.2 136,881.7 139,659.5 159,809.9 161,189.5 163,867.7 176,514.6
Investment Banking Operations on Behalf of Third Parties 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Goods in Custody or Under Administration 311,059.5 350,193.4 382,508.4 424,306.5 483,593.5 455,420.9 490,427.3 575,392.8
Loan Portfolio Clasification 53,873.6 53,911.4 42,759.3 47,718.8 0.0 0.0 0.0 0.0
Amounts Contracted in Derivative Instruments 90,656.0 107,476.7 130,856.3 143,042.2 0.0 0.0 0.0 0.0
Other accounts 0.0 0.0 0.0 0.0 0.0 510,251.2 509,563.1 588,445.7
605,670.8 663,642.5 705,823.4 767,290.8 654,542.3 1,138,820.2 1,175,520.3 1,350,379.0
Receivables on Repurchase Agreements 38,686.9 44,705.0 38,187.3 45,831.6 35,055.8 38,589.8 40,500.0 33,651.8
Repurchase Agreement Creditors 38,724.3 44,711.5 38,139.1 45,834.1 35,021.7 38,589.8 40,491.0 33,644.5
Net (37.4) (6.5) 48.3 (2.5) 34.1 0.0 9.0 7.3
Repurchase Agreement Debtors 16,032.7 27,401.4 16,676.9 23,870.6 20,285.7 14,281.5 8,345.4 11,389.1
Payables on Repurchase Agreements 15,986.1 27,377.3 16,687.5 23,840.0 20,307.6 14,266.6 8,345.0 11,392.9
Net 46.6 24.1 (10.5) 30.6 (21.9) 14.9 0.4 (3.8)
57
FIXED CAPITAL
STOCK PREMIUM
CAPITAL RESERVES
RETAINED EARNINGS
SURPLUS (DEFICIT) FROM
EQUITY RESTATEMENT
NON MONETARY
ASSEST RESULT
NET INCOME
MINORITY INTEREST
TOTAL STOCKHOLDE
RS' EQUITY
BALANCE AT DECEMBER 31st
2003 13,863.0 0.0 4,356.0 12,422.0 (9,406.0) 112.0 551.0 42.0 21,940.0
CHANGES INHERENT TO SHAREHOLDER´S DECISIONS
Transfer of 2003 results 551.0 (551.0) 0.0
Reserves creation 55.0 (55.0) 0.0
Dividens Payment (113.0) (113.0)
CHANGES INHERENT TO OPERATION
Net Income for the exercise 1,313.0 1,313.0
CHANGES DUE TO RECOGNITION OF SPECIFIC ACCOUNTING PRINCIPLES
No monetary assets results 101.0 101.0Minority Interest 6.0 6.0
BALANCE AT DECEMBER 31. 2004 13,863.0 - 4,411.0 12,805.0 (9,406.0) 213.0 1,313.0 48.0 23,247.0
SUSCRIBED CAPITAL EARNED CAPITAL
BANCO INBURSA, S.A.STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
AT DECEMBER 2004(MM PS)
58
Dic-04
OPERATING ACTIVITIESNet Income 1,313.0
Subsidiaries' Income 270.0Depreciation & Amortization 133.0Loan Loss Reserves 1,277.0Market Related Result 2,033.0Goodwill amort. 0.0Minoritary Interest 6.0Deferred taxes 463.0
5,495.0
Cash increase (decrease) from funding 19,959.0
Cash increase (decrease) from Loan Portfolio (9,733.0)Decrease or Increase in treasury transactions (10,125.0)Cash increase (decrease) from Derivative Financial Instruments (1,895.0)Banking Loans & Other Financial Institutions (2,178.0)Other increase (decrease) related with the operation (49.0)Repo Operations (23.0)
(4,044.0)
Cash flow from operating activities 1,451.0
Financing Activities
Dividends Payment (113.0)
Cash Flow From Financing Activities (113.0)
Investments Activities
Buy(sell) of fixed permanent stocks (477.0)Buy(sell) of fixed assets (97.0)Receivables,Sundry Debtors & Adv. Payments 0.0Deferred Charges (187.0)Repossessed Property 1.0Other financing activities (62.0)Other Accounts Payable & Recievable 2,436.0
Cash Flow From Investment Activities 1,614.0
Net Increase in Cash 2,952.0
Cash at beginning of the period 6,976.0
Cash at end of period 9,928.0
BANCO INBURSA, S.A.STATEMENT OF CHANGES IN FINANCIAL SITUATION AT DECEMBER 31, 2004
(MM PS)
59
OPERADORA INBURSAIncome Statement
Acumulated (MM Constant Ps. as of December, 2004 ) 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 DEC´ 04 DEC´ 03Earnings from Investment Sales 1.0 1.1 0.3 0.5 0.8 0.6 0.3 1.2 2.9 2.9
Asset Management Income 38.2 41.5 41.8 41.4 47.5 48.6 47.0 47.6 190.7 162.8
Earnings form Interest 0.0 0.8 0.0 0.1 0.5 0.2 0.2 0.1 1.0 0.9
Unrealized Gain on Portfolio Valuation 16.4 (6.5) 0.6 (0.5) (0.5) 1.9 0.4 1.7 3.5 9.9
Total Earnings 55.5 36.8 42.7 41.5 48.3 51.3 48.0 50.6 198.2 176.5
General Expenses 1.9 2.1 2.4 2.4 3.2 2.2 1.8 12.3 19.5 8.8
Total expenses 1.9 2.1 2.4 2.4 3.2 2.2 1.8 12.3 19.5 8.8
Earnings Before Taxes 53.7 34.7 40.3 39.1 45.1 49.1 46.1 38.3 178.6 167.7
Incurred Income Tax & Profit Sharing 18.6 18.7 18.5 16.8 26.6 22.1 20.4 16.8 85.9 72.6
Net Income Before Deferred Accounts 35.0 16.0 21.8 22.3 18.5 27.1 25.7 21.5 92.7 95.1
Earnings from subsidiaries 6.3 35.5 15.9 15.3 34.7 11.5 19.6 28.2 94.0 72.9
Unadjusted for monetary position result 41.3 51.4 37.7 37.6 53.2 38.6 45.3 49.7 186.8 168.1
Monetary position (5.1) (1.7) (2.6) (6.6) (7.2) (0.5) (5.6) (10.0) (23.2) (16.0)
Net income result actualization 0.1 0.0 0.8 2.4 0.3 0.0 1.5 3.3 5.2 3.4
Net income 36.3 49.8 35.9 33.5 46.4 38.1 41.2 43.0 168.7 155.4
60
OPERADORA INBURSABALANCE SHEET (MM Constant Ps. as of December, 2004)
ASSETS 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Cash 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Banks 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Negotiable Instruments 229.4 48.0 76.9 103.6 126.3 57.2 88.5 117.8Sundry Debtors 20.3 33.0 44.5 57.0 25.1 41.2 56.0 21.8Permanent investments 250.6 286.2 299.5 310.9 340.9 353.3 367.7 390.6Receivable Taxes 13.0 13.0 12.8 12.6 12.4 12.4 12.2 0.0
TOTAL ASSETS 513.2 380.2 433.8 484.2 504.7 464.1 524.4 530.3LIABILITIES & STOCKHOLDERS' EQUITY
Sundry Creditors 0.4 0.1 0.3 0.3 0.0 0.0 0.0 0.0
Payable Taxes 14.3 28.4 41.6 54.6 16.7 32.7 47.5 4.4
Deferred Income Tax 19.1 9.5 14.6 18.3 30.1 30.5 35.9 40.5TOTAL LIABILITIES 33.7 38.0 56.5 73.3 46.8 63.2 83.3 44.8
STOCKHOLDERS' EQUITYStockholders' Equity 21.4 21.5 21.4 21.5 21.5 21.5 21.4 21.5Legal Reserve 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Retained Earnings 466.2 279.2 278.4 278.5 434.5 339.5 338.3 339.8Surplus (deficit) from equity restatement (48.4) (48.6) (48.4) (48.5) (48.5) (48.5) (48.4) (48.6)Net income 36.3 86.0 121.9 155.4 46.4 84.5 125.7 168.7
TOTAL STOCKHOLDERS´ EQUITY 479.5 342.2 377.3 410.9 457.8 400.9 441.0 485.4
TOTAL LIABILITIES & STOCKHOLDERS´ EQUITY 513.2 380.2 433.8 484.2 504.7 464.1 524.4 530.3
61
INVERSORA BURSATILIncome Statement
Acumulated (MM Constant Ps. as of December, 2004) 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 DEC´ 04 DEC´ 03Commisions & Tariffs 40.8 85.1 77.2 94.8 186.1 170.4 89.8 129.9 576.2 297.8Earnings From Services 40.8 85.1 77.2 94.8 186.1 170.4 89.8 129.9 576.2 297.8
Income from sale of securities 137.4 18.5 6.3 9.9 24.1 14.4 26.1 131.7 196.3 172.1Interest Income 2.3 0.6 0.7 0.7 6.5 6.5 (7.5) (1.6) 3.9 4.3Interest Expense (114.0) 2.5 6.4 10.1 (0.0) 0.0 (3.0) (127.1) (130.2) (95.1)Unrealized gain on Portfolio Valuation (4.1) 42.1 12.1 20.4 26.6 24.0 18.8 51.0 120.4 70.5Monetary Position (8.2) (2.3) (5.3) (15.7) (14.5) (0.9) (12.9) (22.2) (50.5) (31.6)Financial Margin 13.4 61.4 20.1 25.3 42.6 44.1 21.6 31.7 140.0 120.3
Operating Income 54.2 146.5 97.3 120.2 228.7 214.4 111.4 161.7 716.2 418.1
General Expenses 39.3 44.4 48.1 42.0 49.9 44.1 40.0 77.2 211.2 173.7
Operating Margin 14.9 102.1 49.2 78.2 178.8 170.4 71.3 84.5 505.0 244.4
Other Expenses (Income) (0.7) (0.8) (0.4) (1.5) 7.0 (0.3) (1.3) (4.8) 0.7 (3.5)
Net Income Before Income Tax & Profit Sharing 15.6 102.9 49.6 79.8 171.8 170.6 72.6 89.3 504.3 247.9
Incurred Income Tax & Profit Sharing 7.4 21.7 12.7 21.6 52.2 49.0 17.3 15.6 134.1 63.4Deffered Income Tax (0.7) 13.4 2.8 5.5 5.6 6.3 5.5 13.4 30.8 21.0
Net Income Before Subsidiaries' Net Income 8.9 67.9 34.1 52.6 113.9 115.4 49.9 60.3 339.5 163.4
Subsidiaries' Net Income 1.1 1.9 1.5 2.5 1.8 2.2 2.1 2.1 8.2 7.0
Net Income 10.0 69.7 35.6 55.1 115.7 117.6 52.0 62.3 347.7 170.4
62
INVERSORA BURSATILBALANCE SHEET (MM Constant Ps. as of December, 2004)
ASSETS 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04
Cash & Banks 0.0 1.1 0.4 0.5 0.4 0.5 0.5 0.4
FINANCIAL INSTRUMENTS 782.4 791.0 830.3 892.6 1,014.0 982.1 1,047.9 1,113.0Negotiable 782.4 791.0 830.3 892.6 1,014.0 982.1 1,047.9 1,113.0Under repurchase receivable agreements 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Repos & Derivatives 38.0 56.5 43.3 63.4 45.7 18.3 6.5 10.3Repo Operations 38.0 56.5 43.3 63.4 45.7 18.3 6.5 10.3
Other accounts receivable 5.8 3.2 3.6 3.4 7.6 4.3 8.2 7.2
Fixed assets,net 43.1 44.5 43.1 31.7 29.9 28.6 28.0 27.5
Permanent equity investments 42.8 42.5 44.0 44.8 46.9 45.9 47.8 46.5
Other Assets 54.2 63.4 73.7 84.7 79.9 141.3 150.8 80.9
TOTAL ASSETS 966.4 1,002.3 1,038.3 1,121.0 1,224.4 1,220.9 1,289.7 1,285.8
LIABILITIES & STOCKHOLDERS' EQUITYLIABILITIES
Securities & Derivatives 38.9 56.2 43.2 63.2 45.2 18.2 8.7 13.5Repo Operations 38.9 56.2 43.2 63.2 45.2 18.2 8.7 13.5
Other Account Payable 102.0 120.2 133.2 142.6 134.2 168.0 191.9 109.5Income Tax & Employee profit sharing provision 70.9 78.4 87.7 111.8 96.6 132.2 156.4 73.5Sundry creditors & other accounts payable 31.1 41.9 45.5 30.7 37.6 35.8 35.4 36.1
Deferred taxes 9.7 23.1 25.7 30.7 35.8 42.1 46.9 54.8
Total Liabilities 150.6 199.5 202.0 236.4 215.3 228.2 247.4 177.9
STOCKHOLDERS' EQUITY
Suscribed capital 522.7 551.4 549.7 550.0 550.7 582.4 580.4 583.0Paid-in capital 522.7 551.4 549.7 550.0 550.7 582.4 580.4 583.0
Earned Capital 293.0 251.4 286.6 334.5 458.4 410.3 461.8 525.0Capital reserves 54.6 57.9 57.7 57.8 57.8 66.2 66.0 66.3Retained earnings 432.1 317.2 316.2 316.4 487.3 313.1 312.1 313.4Valuation effect in assoc. & affiliated companies 31.9 32.6 32.7 32.8 33.2 33.3 33.4 33.6Surplus (deficit) of equity restatement (235.4) (236.0) (235.3) (242.8) (235.7) (235.8) (235.0) (236.0)Net icome 10.0 79.7 115.3 170.4 115.7 233.4 285.3 347.7
Stockholders' Equity 815.8 802.8 836.3 884.6 1,009.1 992.7 1,042.2 1,108.0
Total Liabilities & Stockholders´ Equity 966.4 1,002.3 1,038.3 1,121.0 1,224.4 1,220.9 1,289.7 1,285.8
63
SEGUROS INBURSAIncome Statement Including Monetary Adjustments Acumulated (MM Constant Ps. as of December, 2004) 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 DEC´ 04 DEC´ 03Premiums written 1,573.5 2,240.8 2,421.3 2,217.6 2,082.9 2,149.8 2,075.8 2,671.5 8,979.9 8,453.2Premiums ceded 153.7 729.8 358.9 531.4 205.9 462.4 368.9 473.9 1,511.1 1,773.8Retained Premiums 1,419.7 1,511.0 2,062.5 1,686.2 1,877.0 1,687.4 1,706.9 2,197.5 7,468.8 6,679.4
Increased in reserve for unearned premiums 73.7 203.7 480.2 168.7 155.1 316.8 617.6 297.5 1,387.1 926.2
Retained earned premiums 1,346.1 1,307.3 1,582.3 1,517.5 1,721.8 1,370.6 1,089.3 1,900.0 6,081.7 5,753.2
Net Acquisition Cost 320.0 334.6 278.6 325.9 335.8 380.7 350.6 343.5 1,410.7 1,259.1 Commisions to agents 140.7 199.0 143.4 177.8 146.2 160.2 129.4 164.3 600.1 660.9 Additional compensation to agents 59.3 66.6 82.8 92.0 69.7 87.9 100.9 99.3 357.8 300.6 Commisions for re-insurance taken 0.1 0.0 1.6 0.0 0.0 0.1 4.0 0.1 4.2 1.7 Commisions for re-insurance given (27.4) (97.7) (96.6) (98.3) (41.0) (58.0) (58.9) (88.4) (246.4) (320.1) Coverage on losses excess 36.5 36.6 41.9 45.7 46.6 45.5 41.1 40.0 173.2 160.7 Others 110.9 130.1 105.5 108.6 114.3 145.0 134.2 128.3 521.7 455.2
Net cost of claims and contractual obligations 774.7 941.1 977.7 919.6 1,109.6 1,215.3 910.6 1,068.2 4,303.7 3,613.2 Claims and other contractual obligations 814.5 943.2 971.2 914.0 1,169.5 1,225.0 910.3 1,068.9 4,373.7 3,642.9 Claims recovered from re-insurance 39.8 2.1 (6.5) (5.6) 59.9 9.7 (0.3) 0.7 70.0 29.7 Other claims 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Technical Income 251.3 31.6 326.0 272.0 276.4 (225.4) (172.0) 488.3 367.3 880.9
Net Increase in other technical reserve (52.4) 19.1 (55.7) 514.0 (17.6) 10.0 (53.6) (13.0) (74.3) 425.0 Catastrophic risks reserves (48.5) 18.8 (52.5) 615.5 (14.6) 10.1 (50.4) 82.1 27.2 533.3 Preventions reserves (3.9) 0.2 (3.0) (101.5) (3.0) (0.1) (3.2) (95.1) (101.4) (108.2) Contingency claim reserves (0.0) 0.0 (0.0) (0.0) (0.0) 0.0 (0.0) (0.0) (0.0) (0.1) Other reserves (0.0) 0.1 (0.1) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
Gross profit 303.7 12.6 381.6 (242.0) 294.0 (235.5) (118.3) 501.3 441.6 455.9
Net operating expenses 164.8 182.0 187.0 233.0 174.9 143.3 142.2 160.0 620.4 766.7 Administrative and operating expenses (13.6) (9.4) (26.0) (4.3) (58.2) (76.3) (76.2) (80.2) (291.0) (53.3) Personnel expenses 167.2 175.7 198.2 222.2 220.8 207.2 207.7 228.8 864.6 763.3 Depreciation and amortization 11.1 15.7 14.9 15.1 12.3 12.5 10.7 11.4 46.8 56.7 Operating Profits 139.0 (169.4) 194.6 (475.0) 119.1 (378.8) (260.5) 341.3 (178.8) (310.8)
Net Financial Income 51.0 460.8 98.0 181.0 414.5 273.9 178.8 140.1 1,007.3 790.8 On investments 141.4 146.5 91.2 106.3 56.6 92.1 71.3 83.5 303.4 485.4 Investments sales 23.6 8.0 (4.6) (23.1) 134.5 58.0 67.9 214.7 475.0 3.8 Investments revaluation (29.8) 298.4 67.4 173.5 345.6 113.8 159.7 27.0 646.2 509.5 Charges on premiums 19.3 20.7 21.0 20.7 19.5 20.4 21.0 19.7 80.5 81.7 Others (0.0) 0.8 6.7 4.3 3.2 9.7 4.2 5.3 22.4 11.8 Forex 5.4 (18.5) 3.2 23.9 3.4 (15.5) 0.7 2.5 (8.8) 14.0 REPOMO (108.9) 4.9 (86.9) (124.5) (148.3) (4.6) (146.0) (212.6) (511.5) (315.4)
Income before income taxes & employee profit sharing190.0 291.4 292.6 (294.0) 533.7 (104.9) (81.7) 481.4 828.5 480.0 Provision for income tax 87.2 112.7 138.1 (91.9) 133.0 (24.2) 46.1 74.6 229.5 246.0 Provision for employee profit sharing 28.1 34.6 41.3 (22.9) 41.4 (8.4) 7.2 29.8 70.0 81.1 Subsidiaries results 17.4 23.8 1.4 (25.2) 3.9 4.3 53.4 74.2 135.7 17.5
Net income 92.2 167.9 114.6 (204.4) 363.0 (68.0) (81.7) 451.2 664.7 170.4
64
SEGUROS INBURSABALANCE SHEET Including Monetary Adjustments (MM Constant Ps. as of December, 2004)
ASSETS 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Investments 10,577.2 11,182.7 12,210.7 12,372.4 13,202.5 12,143.6 12,228.1 14,525.8Securities 9,246.9 9,615.6 10,613.2 10,751.1 11,556.3 10,428.0 10,913.4 13,284.4 Government 4,829.5 5,423.2 6,230.1 6,246.8 6,892.6 6,967.4 7,238.5 7,141.8 Private companies 3,781.5 3,337.2 3,476.6 3,453.2 3,381.1 2,066.6 2,098.6 4,499.9 Debt Instruments 2,527.3 1,971.8 1,939.4 2,091.3 2,271.5 936.4 915.1 3,365.6 Equities 1,254.3 1,365.3 1,537.3 1,361.9 1,109.6 1,130.2 1,183.5 1,134.2 Net unrealized gain on valuation 572.3 813.8 879.0 1,024.9 1,249.8 1,362.4 1,546.9 1,555.3 Interest debtors 63.6 41.4 27.4 26.2 32.8 31.6 29.4 87.4Loans 414.8 653.4 685.7 680.9 707.8 779.1 411.3 339.9 On policies 127.5 129.4 130.2 112.3 117.9 124.8 127.0 126.6 Secured 280.5 521.2 546.4 566.4 581.2 639.0 281.3 209.7 Unsecured 4.5 2.9 3.0 3.0 2.8 2.8 0.4 0.0 Discounts and rediscounts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Past due loans 0.0 0.0 0.0 0.0 0.0 0.0 3.4 4.9 Interest debtors 2.8 1.0 7.8 1.3 7.9 14.5 1.3 1.6 Allowance for write-offs (0.5) (1.1) (1.6) (2.1) (2.1) (2.1) (2.0) (3.0)
Real estate 915.5 913.6 911.8 940.4 938.4 936.5 903.4 901.5 Real estate 64.6 64.6 63.9 62.9 62.0 61.9 54.9 53.9 Net unrealized gain on valuation 898.3 898.2 898.9 926.2 927.1 927.2 902.6 903.6 Depreciation (47.3) (49.2) (51.0) (48.7) (50.6) (52.6) (54.1) (56.0) Investments for labor obligations 472.0 498.2 515.6 519.8 548.8 566.2 581.1 633.3Current assets 59.7 111.8 4.3 28.4 (32.8) 1,390.5 1,884.4 11.2 Cash and banks 59.7 111.8 4.3 28.4 (32.8) 1,390.5 1,884.4 11.2Debtors 2,160.4 2,560.7 2,127.6 2,504.3 2,016.2 2,072.2 1,812.9 2,182.0 Premium debtors 2,031.7 2,429.2 1,988.9 2,363.5 1,845.1 1,913.3 1,663.6 2,012.2 Agents and adjusters 4.2 3.9 3.9 3.2 2.8 3.7 3.2 3.1 Notes receivable 33.9 37.3 39.7 45.0 37.1 40.2 43.0 48.8 Employee loans 59.9 59.7 61.6 58.4 69.9 65.3 62.9 55.6 Other 47.5 47.3 50.1 54.5 82.2 71.5 62.9 83.2 Allowance for write-offs (16.9) (16.9) (16.7) (20.3) (20.9) (21.8) (22.6) (20.9)Reinsurers and rebonders 1,128.9 842.0 991.5 777.5 918.1 853.9 792.2 620.3 Insurance and bonding companies 223.7 125.2 304.2 171.8 152.1 105.7 103.5 78.4 Retained deposits 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Reinsurens share of unsettled claims 882.0 699.4 664.2 604.8 765.1 747.3 687.8 541.0 Reinsurens share of unearned premiums 22.7 16.9 22.5 0.3 0.3 0.3 0.3 0.3Other assets 360.4 235.6 247.5 273.3 309.3 240.3 237.2 245.6 Furniture and equipment (net) 84.1 80.3 78.9 75.6 74.3 78.3 83.5 92.8 Foreclosed and repossessed assets 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 Sundry 275.8 154.8 168.1 197.2 234.6 161.6 153.3 152.4Total assets 14,758.6 15,431.0 16,097.0 16,475.7 16,962.1 17,266.6 17,536.1 18,218.0
65
LIABILITIES 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Technical reserves 10,913.8 11,029.0 11,587.9 12,094.9 12,378.0 12,795.2 13,153.5 13,096.8Unearned premiums 4,645.9 4,821.3 5,352.2 5,500.2 5,648.9 6,019.1 6,590.0 6,875.1 Life 2,694.1 2,964.6 3,572.9 3,658.4 3,804.4 4,080.2 4,583.6 4,924.0 Accident and health 1,943.7 1,848.6 1,771.3 1,833.9 1,836.6 1,930.9 1,998.4 1,943.4 Current bonds 8.1 8.1 8.1 8.0 7.9 7.9 8.0 7.6Contractual obligations 3,576.9 3,516.2 3,569.8 3,403.8 3,559.0 3,588.4 3,430.1 3,105.5 Losses and maturities 1,440.0 1,421.6 1,455.2 1,503.3 1,616.1 2,179.3 2,026.4 2,117.9 Reserve for incurred but not reported losses 1,428.1 1,369.4 1,394.4 1,164.0 1,240.3 707.1 700.9 271.8 Policy dividends 144.7 167.8 165.4 188.3 175.7 162.6 168.3 179.0 Managed insurance funds 542.0 538.0 531.6 524.4 511.0 519.6 511.9 512.9 Deposits premiums 22.1 19.3 23.2 23.9 15.9 19.9 22.6 24.0
Prevision 2,690.9 2,691.5 2,665.9 3,190.9 3,170.1 3,187.7 3,133.5 3,116.3 Prevision 304.5 303.4 302.4 206.0 202.6 198.8 194.9 99.0 Catastrophic 2,383.9 2,385.6 2,361.0 2,982.5 2,965.1 2,986.5 2,936.1 3,014.9 Contingency 2.4 2.4 2.3 2.3 2.3 2.3 2.3 2.3 Specials 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.1 Provision for labor obligations at retirement 469.2 497.1 513.9 513.4 542.0 561.9 581.0 630.5
Creditors 228.4 221.0 247.4 305.6 290.9 318.6 271.1 313.7 Agents and adjusters 189.5 175.1 209.1 239.0 200.1 200.9 224.0 231.6 Managed loss funds 6.3 7.0 7.8 8.7 7.5 7.0 6.4 6.2 Sundry 32.6 39.0 30.5 58.0 83.3 110.8 40.6 75.9
Reinsurers and rebonders 361.9 709.8 515.9 566.2 302.5 324.6 335.7 380.2 Insurance and bonding companies 361.3 709.2 515.1 565.4 301.8 323.9 335.0 379.5 Retained deposits 0.6 0.7 0.8 0.8 0.7 0.7 0.7 0.7
Other liabilities 832.9 851.3 993.4 930.4 1,020.7 906.6 918.6 1,055.9 Provision for employee profit sharing 301.9 169.6 307.9 126.5 209.3 18.1 23.7 161.3 Other liabilities 377.9 412.8 381.9 435.3 357.7 383.8 333.1 380.9 Deferred credits 153.1 268.8 303.6 368.6 453.7 504.7 561.7 513.8
Total liabilities 12,806.2 13,308.2 13,858.5 14,410.5 14,534.2 14,907.0 15,260.0 15,477.2
Stockholders' equity Paid in capital 956.3 956.3 956.3 956.3 956.3 956.3 956.3 956.3 Capital stock 956.3 956.3 956.3 956.3 956.3 956.3 956.3 956.3 Reserves 1,716.3 1,832.4 1,614.1 1,614.1 1,614.1 1,848.4 1,848.4 1,848.4 legal 104.8 116.4 116.4 116.4 116.4 133.4 133.4 133.4 Repurchase of shares 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other 1,611.5 1,716.0 1,497.7 1,497.7 1,497.7 1,714.9 1,714.9 1,714.9 Unrealized gain on valuation of real estate 2.0 3.0 3.6 6.0 6.0 6.2 6.2 14.5 Subsidiaries (47.4) (41.9) (41.0) (41.0) (41.0) (23.5) (25.0) (19.4) Retained earnings 521.5 379.4 597.8 597.8 768.1 516.3 516.3 516.3 Net income 92.2 260.1 374.7 170.4 363.0 295.1 213.4 664.7 Excess (insufficient) on Stockholders' actualization(1,288.4) (1,266.5) (1,267.0) (1,238.3) (1,238.7) (1,239.1) (1,239.5) (1,239.9) Total stockholders' equity 1,952.4 2,122.8 2,238.6 2,065.2 2,427.9 2,359.7 2,276.1 2,740.8
Total liabilities and stockholders' equity 14,758.6 15,431.0 16,097.0 16,475.7 16,962.1 17,266.6 17,536.1 18,218.0
66
PENSIONES INBURSAIncome Statement Including Monetary Adjustments Acumulated (MM Constant Ps. as of December, 2004) 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 DEC´ 04 DEC´ 03Premiums written 163.2 192.4 142.5 196.0 76.7 314.9 51.5 102.3 545.4 694.0Premiums ceded 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Retained Premiums 163.2 192.4 142.5 196.0 76.7 314.9 51.5 102.3 545.4 694.0
Increased in reserve for unearned premiums 67.8 159.8 35.6 126.6 14.8 205.1 (56.6) 80.1 243.4 389.8
Retained earned premiums 95.4 32.6 106.8 69.4 61.9 109.7 108.1 22.2 302.0 304.2
Net Acquisition Cost 22.3 28.9 19.0 25.4 6.8 2.5 1.9 7.4 18.6 95.5 Commisions to agents 1.2 0.1 (0.0) 0.0 0.0 0.0 0.0 0.0 0.0 1.3 Additional compensation to agents 1.1 0.0 (0.0) (0.0) 0.0 0.0 0.0 0.0 0.0 1.1 Commisions for re-insurance taken 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Commisions for re-insurance given 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Coverage on losses excess 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Others 20.0 28.8 19.0 25.4 6.8 2.5 1.9 7.4 18.6 93.1
Net cost of claims and contractual obligations 172.0 177.5 185.0 172.6 193.5 175.6 180.1 175.3 724.5 707.1 Claims and other contractual obligations 172.0 177.5 185.0 172.6 193.5 175.6 180.1 175.3 724.5 707.1 Claims recovered from re-insurance 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other claims 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Technical Income (98.9) (173.8) (97.2) (128.6) (138.4) (68.4) (73.9) (160.5) (441.2) (498.4)
Net Increase in other technical reserve 18.9 20.2 17.7 33.9 6.4 13.6 (6.0) (31.2) (17.2) 90.7 Catastrophic risks reserves 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Preventions reserves 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Contingency claim reserves 1.0 2.8 0.3 2.2 0.0 3.9 (1.4) 1.4 3.8 6.3 Other reserves 17.9 17.4 17.4 31.7 6.4 9.7 (4.6) (32.5) (21.0) 84.4
Gross profit (117.8) (194.0) (114.8) (162.5) (144.8) (81.9) (67.9) (129.4) (423.9) (589.2)
Net operating expenses (67.3) 94.7 14.8 14.3 12.1 11.6 10.8 11.3 45.8 56.5 Administrative and operating expenses (80.4) 89.7 7.7 7.3 5.1 4.5 3.8 4.2 17.6 24.2 Personnel expenses 4.1 (0.0) (0.0) (0.0) 0.0 0.0 0.0 0.0 0.0 4.1 Depreciation and amortization 9.1 5.0 7.0 7.0 7.0 7.0 7.0 7.0 28.2 28.2 Operating Profits (50.6) (288.7) (129.6) (176.8) (156.9) (93.5) (78.7) (140.6) (469.8) (645.7)
Net Financial Income 191.2 315.6 137.0 232.1 253.3 218.2 197.3 284.7 953.5 875.9 On investments 232.2 232.0 230.8 238.3 218.0 218.4 238.7 246.3 921.3 933.3 Investments sales (0.6) 0.4 (0.2) (0.0) 14.0 17.1 19.7 3.0 53.8 (0.5) Investments revaluation 131.0 73.9 46.6 212.5 233.0 (9.3) 175.1 279.8 678.6 464.0 Charges on premiums 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Others 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.1 Forex 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 REPOMO (171.3) 9.4 (140.2) (218.8) (211.7) (8.0) (236.2) (244.4) (700.3) (520.9)
Income before income taxes & employee profit sharing140.7 26.9 7.4 55.3 96.3 124.7 118.7 144.1 483.7 230.3 Provision for income tax 30.8 9.9 24.5 25.1 15.4 53.8 34.9 32.9 137.1 90.3 Provision for employee profit sharing 0.1 (0.0) 0.0 (0.0) 0.0 0.0 0.0 0.0 0.0 0.1 Subsidiaries results 97.1 336.7 110.6 503.2 152.7 147.9 1,702.5 285.6 2,288.6 1,047.6
Net income 206.8 353.7 93.5 533.4 233.6 218.7 1,786.3 396.7 2,635.3 1,187.5
67
PENSIONES INBURSABALANCE SHEET (MM Constant Ps. as of December, 2004)
ASSETS 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Investments 14,117.2 15,628.9 18,702.0 19,384.8 19,586.0 20,035.6 21,730.4 22,136.2Securities 14,117.2 15,628.9 18,702.0 19,384.8 19,586.0 20,035.6 21,730.4 22,136.2 Government 8,518.5 8,559.3 8,577.3 8,386.6 8,380.3 8,626.1 8,648.7 7,933.1 Private companies 3,547.1 3,981.4 7,277.6 7,308.7 7,346.0 7,262.7 7,566.1 8,064.2 Debt Instruments 2,893.1 2,889.9 3,058.5 3,089.7 3,127.0 3,043.7 3,082.4 3,580.5 Equities 654.0 1,091.6 4,219.1 4,219.1 4,219.0 4,219.0 4,483.7 4,483.6 Net unrealized gain on valuation 1,917.5 2,800.0 2,717.7 3,403.3 3,736.5 3,863.3 5,360.6 5,851.7 Interest debtors 134.1 288.2 129.5 286.1 123.3 283.4 155.0 287.2Loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 On policies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Secured 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Unsecured 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Discounts and rediscounts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Past due loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Interest debtors 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Allowance for write-offs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Real estate 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Real estate 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Net unrealized gain on valuation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Depreciation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Investments for labor obligations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Current assets 0.6 4.6 16.9 10.7 9.9 1.7 1.6 2.0 Cash and banks 0.6 4.6 16.9 10.7 9.9 1.7 1.6 2.0Debtors 14.5 12.1 9.9 7.7 0.9 2.2 5.1 7.6 Premium debtors 11.2 10.7 8.7 6.5 0.1 1.1 4.0 6.6 Agents and adjusters (0.1) (0.1) (0.1) 0.0 (0.1) (0.1) (0.1) (0.1) Notes receivable 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Employee loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other 3.2 1.3 1.2 1.0 0.7 1.0 1.0 0.9 Allowance for write-offs (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)Reinsurers and rebonders 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Insurance and bonding companies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Retained deposits 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Reinsurens share of unsettled claims 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Reinsurens share of unearned premiums 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Other assets 208.2 200.6 195.4 191.8 178.4 220.4 232.8 256.3 Furniture and equipment (net) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Foreclosed and repossessed assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Sundry 208.2 200.6 195.4 191.8 178.4 220.4 232.8 256.3Total assets 14,340.5 15,846.2 18,924.3 19,594.9 19,775.2 20,259.9 21,969.9 22,402.2
68
LIABILITIES 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Technical reserves 12,294.2 12,454.9 12,493.0 12,653.1 12,671.0 12,883.9 12,824.1 12,831.1Unearned premiums 11,803.9 11,944.2 11,959.6 12,070.7 12,071.5 12,265.7 12,193.3 12,261.1 Life 11,803.9 11,944.2 11,959.6 12,070.7 12,071.5 12,265.7 12,193.3 12,261.1 Accident and health 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Current bonds 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Contractual obligations 41.2 52.8 71.6 40.2 54.7 62.1 74.6 45.0 Losses and maturities 37.5 50.5 70.5 40.2 52.6 62.0 73.3 42.5 Reserve for incurred but not reported losses 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Policy dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Managed insurance funds 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Deposits premiums 3.7 2.2 1.0 0.0 2.1 0.1 1.3 2.5
Prevision 449.2 458.0 461.7 542.3 544.7 556.1 556.2 525.0 Prevision 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Catastrophic 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Contingency 236.1 238.9 239.2 241.4 241.4 245.3 243.9 245.2 Specials 213.1 219.1 222.6 300.8 303.3 310.8 312.3 279.8 Provision for labor obligations at retirement 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Creditors 6.5 8.3 7.4 7.2 3.7 4.9 5.4 6.2 Agents and adjusters 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Managed loss funds 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Sundry 6.4 8.3 7.4 7.2 3.7 4.9 5.4 6.2
Reinsurers and rebonders 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Insurance and bonding companies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Retained deposits 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other liabilities 74.5 73.2 111.1 88.3 20.6 72.5 99.9 131.0 Provision for employee profit sharing 53.2 40.1 63.6 87.2 14.4 64.3 97.5 127.9 Other liabilities 21.3 32.7 46.6 0.0 3.9 6.1 0.0 0.0 Deferred credits 0.0 0.4 0.8 1.2 2.2 2.1 2.4 3.1
Total liabilities 12,375.2 12,536.4 12,611.4 12,748.6 12,695.2 12,961.3 12,929.4 12,968.3
Stockholders' equity Paid in capital 1,298.8 2,206.2 5,119.5 5,119.5 5,119.5 5,119.5 5,119.5 5,119.5 Capital stock 2,205.6 2,206.2 5,119.5 5,119.5 5,119.5 5,119.5 5,119.5 5,119.5 (-)Unsubscribed capital 906.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Reserves 148.4 174.7 172.1 172.1 172.1 257.1 257.1 257.1 legal 0.0 17.6 17.6 17.6 17.6 136.3 136.3 136.3 Repurchase of shares 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other 148.4 157.1 154.6 154.6 154.6 120.8 120.8 120.8 Unrealized gain on valuation of real estate 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Subsidiaries 60.5 119.1 115.4 115.4 115.4 1,163.0 1,118.6 1,115.4 Retained earnings 2,869.0 2,899.9 2,902.4 2,902.4 4,089.9 2,957.4 2,957.4 2,957.4 Net income 206.8 560.5 654.1 1,187.5 233.6 452.3 2,238.6 2,635.3 Excess (insufficient) on Stockholders' actualization (2,618.3) (2,650.7) (2,650.7) (2,650.7) (2,650.7) (2,650.7) (2,650.7) (2,650.7) Total stockholders' equity 1,965.3 3,309.8 6,312.9 6,846.3 7,079.9 7,298.6 9,040.4 9,433.9
Total liabilities and stockholders' equity 14,340.5 15,846.2 18,924.3 19,594.9 19,775.2 20,259.9 21,969.9 22,402.2
69
Fianzas Guardiana-InbursaIncome Statement Including Monetary Adjustments Acumulated(000´s Constant Ps. as of December 2004) 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 DEC´ 04 DEC´ 03
Premiums accepted 74,028.7 73,107.9 77,437.8 85,825.1 81,684.4 84,226.4 99,142.9 108,457.6 373,511.2 310,399.5Premiums ceded 11,398.8 12,936.9 8,412.3 19,544.0 17,432.0 18,752.2 19,361.8 19,116.4 74,662.4 52,292.1RETAINED PREMIUMS 62,629.9 60,170.9 69,025.5 66,281.1 64,252.4 65,474.2 79,781.0 89,341.2 298,848.8 258,107.4
Application of reserve for outstanding bonds 17,523.6 23,549.3 (95,172.2) (9,625.9) 346.2 1,039.6 1,179.9 852.9 3,418.5 (63,725.2)NET PREMIUM REVENUES 45,106.3 36,621.6 164,197.7 75,907.0 63,906.3 64,434.6 78,601.1 88,488.3 295,430.3 321,832.6
Net Acquisition Cost (1,935.4) (2,037.1) (1,675.3) (13,365.5) (4,601.7) (10,267.2) (5,321.0) (14,380.4) (34,570.3) (19,013.3) Comisions to agents 737.6 269.8 177.9 640.2 79.5 32.7 748.4 244.4 1,105.1 1,825.4 Comisions for rebonding taken 47.6 20.1 227.3 89.1 1.0 31.9 (22.9) 280.9 290.8 384.1 Comisions for rebonding given (3,974.2) (3,813.5) (3,148.4) (6,533.3) (5,937.8) (7,372.9) (7,537.6) (9,485.3) (30,333.6) (17,469.4) Others 1,253.7 1,486.5 1,068.0 (7,561.6) 1,255.6 (2,958.9) 1,491.1 (5,420.4) (5,632.6) (3,753.4)
Claims 31,384.5 31,916.6 45,011.8 56,886.1 45,037.1 28,691.6 39,465.9 53,437.8 166,632.5 165,198.9Technical Income 15,657.2 6,742.1 120,861.2 32,386.4 23,470.8 46,010.1 44,456.2 49,430.9 163,368.1 175,647.0
Net increase in other technical reserves 5,159.4 7,163.2 (13,968.4) (1,625.7) (1,961.0) 518.2 (1,979.1) (2,329.3) (5,751.2) (3,271.6)
GROSS INCOME 10,497.8 (421.1) 134,829.6 34,012.2 25,431.9 45,492.0 46,435.3 51,760.2 169,119.3 178,918.5
Net Operating Expenses (7,063.5) (6,995.7) (4,129.0) (5,729.4) (6,172.3) (6,360.2) (6,988.4) (876.6) (20,397.5) (23,917.6) Administrative & operating expenses (7,245.0) (7,226.7) (4,460.2) (6,064.2) (6,503.7) (6,688.3) (7,314.0) (1,190.4) (21,696.3) (24,996.1) Personnel expenses 0.0 0.0 0.0 2.6 0.0 0.0 0.0 0.0 0.0 2.6 Depreciation 181.5 231.0 331.3 332.2 331.4 328.1 325.7 313.7 1,298.9 1,075.9
OPERATING INCOME 17,561.4 6,574.6 138,958.6 39,741.6 31,604.1 51,852.1 53,423.7 52,636.8 189,516.7 202,836.1
Financial Income 5,568.7 24,199.5 5,351.0 111.1 11,594.5 15,072.9 1,019.7 796.6 28,483.7 35,230.3 On investments 7,893.5 9,520.7 2,265.6 2,611.7 691.3 2,383.0 1,184.8 501.4 4,760.6 22,291.6 Investments sales 2,580.5 (2,580.5) 0.0 0.0 4,445.7 3,471.5 4,918.6 1,522.2 14,357.9 0.0 Investments revaluation 0.0 18,642.6 5,343.6 4,355.1 14,565.2 8,007.9 5,699.3 9,212.3 37,484.8 28,341.3 Others 18.4 10.0 9.3 (13.8) 14.7 28.3 (938.4) 31.7 (863.7) 23.9 Repos 1,805.2 (1,763.7) 2,721.5 1,149.1 (312.9) 1,524.5 (406.5) (617.4) 187.7 3,912.0 REPOMO (6,728.9) 370.5 (4,989.1) (7,991.0) (7,809.5) (342.3) (9,438.1) (9,853.6) (27,443.6) (19,338.5)
INCOME BEFORE TAXES 23,130.1 30,774.1 144,309.5 39,852.7 43,198.6 66,925.1 54,443.4 53,433.4 218,000.4 238,066.4
Income taxes 4,097.6 10,924.6 59,488.0 32,671.1 15,709.3 18,483.8 38,679.8 (6,505.6) 66,367.3 107,181.3Subsidiaries Net Income 0.0 0.0 2,323.9 24,932.8 5,393.8 5,224.5 60,150.2 10,088.8 80,857.3 27,256.7
NET INCOME 19,032.5 19,849.5 87,145.5 32,114.3 32,883.1 53,665.8 75,913.7 70,027.8 232,490.4 158,141.8
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Fianzas Guardiana-InbursaBALANCE SHEET Including Monetary Adjustments (000´s Constant Ps. as of December, 2004)
ASSETS 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Investments 695,287.6 768,923.9 799,987.1 844,266.2 853,595.2 862,747.7 960,075.6 1,011,945.1Securities 616,571.7 690,067.3 717,128.5 761,021.6 742,386.2 749,103.4 841,897.4 891,222.8 Government 348,449.9 314,320.5 267,169.7 281,067.8 247,205.5 244,070.7 278,198.4 322,217.9 Private companies 242,247.9 333,296.2 355,946.0 349,874.2 345,986.6 348,115.2 391,753.0 367,030.9 Debt Instruments 15,217.4 14,069.9 15,841.4 15,892.8 15,563.7 16,051.5 15,646.9 14,619.2 Equities 227,030.5 319,226.3 340,104.6 333,981.4 330,423.0 332,063.7 376,106.2 352,411.7 Net unrealized gain on valuation 25,862.5 42,401.7 93,978.2 130,051.3 149,181.7 156,891.6 171,929.8 199,518.4 Interest debtors 11.3 49.0 34.6 28.2 12.4 25.9 16.1 2,455.6Loans 41,356.3 41,644.1 45,793.4 46,326.9 52,470.3 55,062.5 59,753.4 62,454.4 Secured 25,453.9 30,541.8 31,868.8 35,384.5 41,867.1 43,949.2 48,400.0 48,942.3 Unsecured 14,896.9 10,002.3 12,657.3 9,537.7 9,143.2 9,527.8 7,561.1 6,820.0 Discounts and rediscounts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Past due loans 0.0 0.0 0.0 0.0 0.0 0.0 2,159.7 4,942.9 Interest debtors 1,005.5 1,100.0 1,267.2 1,404.7 1,460.0 1,585.5 1,632.6 1,749.3Real estate 37,359.7 37,212.5 37,065.3 36,917.7 58,738.7 58,581.7 58,424.8 58,267.8 Real estate 7,809.3 7,814.7 7,734.0 7,609.6 7,492.3 7,487.8 7,361.5 7,234.1 Net unrealized gain on valuation 31,587.9 31,582.5 31,663.2 31,787.6 53,691.9 53,696.4 53,822.6 53,950.0 Depreciation (2,037.5) (2,184.7) (2,331.9) (2,479.5) (2,445.5) (2,602.4) (2,759.4) (2,916.3) Investments for labor obligations 1,457.5 1,489.7 1,486.9 1,468.7 1,478.6 1,506.1 1,512.4 1,511.8Current assets 881.5 4,600.4 2,257.9 5,840.6 3,532.6 3,240.1 5,442.8 1,803.5 Cash and banks 881.5 4,600.4 2,257.9 5,840.6 3,532.6 3,240.1 5,442.8 1,803.5Debtors 36,565.5 47,267.4 43,055.3 37,571.9 39,543.1 44,412.5 43,258.5 66,272.8 Premium debtors 35,567.3 45,841.7 42,000.3 35,237.4 37,623.6 43,108.6 41,645.9 64,101.6 Agents 0.0 0.0 0.0 0.0 27.5 0.0 0.0 0.0 Notes receivable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Debt for bonding claimed & payed 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Employee loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other 998.2 1,425.6 1,055.1 2,334.5 1,892.0 1,303.9 1,612.6 2,171.2 Allowance for write-offs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Rebonders 13,674.2 13,002.9 12,216.7 15,602.1 13,484.6 48,287.2 40,350.0 13,865.0 Bonding companies 4,468.1 3,377.0 2,774.2 6,518.3 4,962.2 8,768.3 5,871.0 9,440.7 Retained deposits 53.0 53.0 52.5 51.6 50.8 50.8 49.9 49.1 Others 938.2 938.9 863.0 849.1 836.0 31,695.1 28,383.4 (1,512.2) Participation in rebonding 8,214.9 8,634.0 8,527.0 8,183.2 7,635.6 7,772.9 6,045.7 5,887.4
Other assets 9,042.2 20,639.7 28,825.0 36,547.3 12,712.6 41,925.2 58,870.5 59,243.7 Furniture and equipment (net) 196.5 168.0 179.5 152.2 125.2 112.9 104.6 95.6 Foreclosed and repossessed assets 1,691.3 1,692.5 1,675.0 1,648.0 1,622.6 1,621.7 1,594.3 1,566.7 Sundry 7,154.5 18,779.2 26,970.5 34,747.0 10,964.7 40,190.7 57,171.5 57,581.3
Total assets 756,908.5 855,923.9 887,828.9 941,296.9 924,346.6 1,002,118.8 1,109,509.8 1,154,641.9
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LIABILITIES 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04Technical reserves 303,143.3 334,125.6 224,417.5 212,198.1 209,383.3 211,277.1 207,971.3 205,469.8Current bonds 130,384.9 154,218.8 58,455.6 47,853.0 47,003.3 48,352.1 47,036.7 46,885.2Contingency bonds 172,758.3 179,906.8 165,961.9 164,345.1 162,380.0 162,925.0 160,934.6 158,584.6Provision for labor obligations at retirement 451.8 474.0 468.0 454.9 466.7 484.2 497.5 498.2
Creditors 7,872.5 15,774.3 14,847.6 13,942.8 12,397.0 28,947.0 27,180.7 7,089.0 Agents and adjusters 355.3 110.8 223.0 99.3 51.4 20.0 393.4 242.5 Managed loss funds 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Sundry 7,517.2 15,663.5 14,624.6 13,843.5 12,345.6 28,927.0 26,787.4 6,846.5
Rebonders 20,067.8 21,242.0 18,356.2 15,332.6 16,545.4 20,249.8 19,118.8 10,250.2 Bonding companies 13,245.5 14,729.6 11,555.1 8,504.9 9,860.3 13,358.8 13,506.6 4,095.8 Other participation 6,822.3 6,512.4 6,801.0 6,827.7 6,685.1 6,890.9 5,612.2 6,154.4
Other liabilities 25,579.4 33,596.6 91,473.1 125,847.3 57,799.4 73,935.7 112,405.0 110,238.4 Provision for employee profit sharing & incured income Tax16,631.2 19,302.7 74,108.6 94,571.6 23,065.5 37,290.8 52,901.8 76,306.7 Other liabilities 8,948.2 10,282.5 9,705.6 12,091.1 10,695.9 10,157.9 12,106.2 15,130.0 Deferred credits 0.0 4,011.4 7,658.9 19,184.7 24,038.0 26,487.0 47,397.1 18,801.7
Total liabilities 357,114.7 405,212.5 349,562.4 367,775.8 296,591.7 334,893.8 367,173.3 333,545.5
Stockholders' equity Paid in capital 114,801.0 141,829.7 141,829.7 141,829.7 141,829.7 141,821.4 141,821.4 141,821.4 Capital stock 145,219.0 141,829.7 141,829.7 141,829.7 141,829.7 141,821.4 141,821.4 141,821.4 (-)Unsubscribed capital (30,418.0) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Reserves 60,585.3 64,750.5 64,750.5 64,750.5 64,750.5 80,564.7 80,564.7 80,564.7 legal 60,585.3 64,750.5 64,750.5 64,750.5 64,750.5 80,564.7 80,564.7 80,564.7 Repurchase of shares 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Unrealized gain on valuation of real estate 3,344.5 7,380.1 7,384.5 10,520.8 9,891.8 6,028.5 6,856.5 15,839.4 Subsidiaries 0.0 0.0 401.5 401.5 401.5 27,658.2 26,010.6 25,742.6 Retained earnings 332,823.2 328,658.0 328,658.0 328,657.9 486,799.7 433,387.6 433,387.6 433,387.6 Net income 19,032.5 38,882.0 126,027.4 158,141.8 32,883.1 86,548.9 162,462.6 232,490.4 Excess (insufficient) on Stockholders' actualization (130,792.6) (130,788.8) (130,785.1) (130,781.2) (108,801.4) (108,784.2) (108,767.0) (108,749.7) Total stockholders' equity 399,793.8 450,711.5 538,266.5 573,521.1 627,754.8 667,225.0 742,336.5 821,096.4
Total liabilities and stockholders' equity 756,908.5 855,923.9 887,828.9 941,296.9 924,346.6 1,002,118.8 1,109,509.8 1,154,641.9